Amazon Warns AI Will Shrink Its Workforce

Amazon CEO Andy Jassy warned employees that artificial intelligence will lead to a smaller workforce in the future. Efficiency gains from AI will ultimately reduce the need for human employees, though the exact impact remains unclear. Over the next few years, widespread AI adoption is expected to decrease Amazon's overall employee count. Jassy also noted that AI's impact extends beyond Amazon, transforming how people work and live, and spawning countless AI agents. However, this prediction is controversial; critics argue these warnings lack research and come from those set to profit from AI adoption. Economists acknowledge AI's significant potential impact on the economy and employment but say the current effect is difficult to isolate due to broader economic slowdown and reduced hiring activity.