Posted by Artificial Intelligence (AI) continues to penetrate industries and businesses globally. In past few years, businesses and organisations are not just investing in AI but are leveraging and relying on various data models and algorithms to meet their business and operational requirements.
Positive and negative impact of AI
Its impact has become more visible both in positive and negative ways today than ever before. In positive terms, organisations are deploying AI to drive efficiency, productivity and innovation. Besides, AI is vastly playing big role in automation of operations and processes, and improving customer experience and, importantly, decision-making.
However in negative terms, organisations are relying less on humans through the use of AI. Leveraging AI and other emerging technologies, they are becoming more lean and mean organisations. In simple terms, software companies have started on rely on AI, replacing humans.
AI will transform the global economy and will affect almost 40% of jobs globally, replacing some and complementing others, according to an IMF analysis published in 2024.
IMF
In advanced economies, about 60% of jobs may be impacted by AI, while in emerging markets and low-income countries, AI exposure is expected to be 40% and 26%, respectively. The IMF analysis emphasized, to have a careful balance policies in order to tap AI’s potential and ensure it benefits humanity.
In 2024, more than 2.8 millions employees lost their jobs from the global tech industry. And 11,000 more job cuts are expected in 2025, according to a research study from RationalFX. Table below shows number of job cuts across different tech companies globally in 2024.
| Tech Companies | Number of Layoffs |
|---|---|
| Dell | 18,500 |
| Intel | 15,100 |
| Amazon | 14,968 |
| Samsung | 14,455 |
| Tesla | 14,000 |
| Li Auto | 10,000 |
| Cisco | 9,600 |
| SAP | 9,500 |
| Toshiba | 9,000 |
| Getir | 6,000 |
| Paytm | 5,000 |
| Siemens | 5,000 |
| Microsoft | 4,985 |
| Total | 1,36,108 |
About 90,471 layoffs have been announced across the global tech industry since the start of 2025, and 2,36,000 layoffs are projected by this year end, as per the study from RationalFX.
Economic uncertainty, high interest rates, fast shift toward automation and AI are the key factors driving mass layoffs across the global tech sector. The worst part of these layoffs is not just individuals being made redundant, but entire roles are being removed from the workforce, which were once considered essential, reveals the study.
Today, AI is able to perform important tasks of writing “software codes” or “software programming.” While this trend continues to expand in the tech industry, it has led to the growing fears about “AI taking away jobs and humans becoming redundant.”
In fact, recent incidents substantiate those fears into real concerns and potentially could become the reality of in some years from now.
Microsoft fired 6,000 employees
For instance, Microsoft fired 6,000 employees, including Gabriela de Queiroz, Director of AI at Microsoft for Startups. This sudden layoff, counts about 3% of the company’s total workforce globally. And it’s nothing to do with employees’ poor performance but with the “realignment” that company’s has undertaken.
Microsoft’s strategy is “realigning” and “repositioning” itself to the artificial intelligence technology-led software company. In fact, Microsoft has already embedded AI into some of its software applications and services with the introduction of Microsoft Copilot, launched back in 2023.
AI writes codes, reduces human dependency
Microsoft CEO Satya Nadella recently said that as much as 30% of the company’s code is now written by artificial intelligence. And its a clear indication in which direction Microsoft is heading and other software companies are to follow.
Today, Microsoft isn’t alone in this race to leverage AI for coding tasks. For instance search giant Google too leveraging AI for coding purpose – in fact, AI is writing 30% of Google’s new code, according to Alphabet CEO Sundar Pichai. And surely there are several other software and tech companies where AI is writing codes.
AI tool to write codes, save money
Essentially, this means software and technology companies will require fewer numbers of software engineers and programmers or coders. Leveraging AI, companies are reducing human dependence for writing software codes. Perhaps, AI is not just as a tool to write codes and automate tasks but probably its a means to cut jobs and save millions and trillions of dollars in salaries for huge workforce.
If this trend gains momentum ahead, AI could wipe out a huge number of jobs from tech industry itself. And its the same industry that has created artificial intelligence and made it powerful enough to drive this new AI-led revolution across industries.
Devastating impact of AI
However, AI firm Anthropic’s CEO Dario Amodei recently, highlighted this devastating impact of AI during an interview. He claimed that AI could wipe out half of all entry-level white-collar jobs.
He cautioned that AI companies and governments to stop hiding the potentially devastating impact, AI could have on humans. Amodei’s statement is a strong proof of the potential scenario the world could face going ahead. AI could trigger huge number of job losses, layoffs and large-scale unemployment globally.
Tech industry victim of AI
AI will not only impact the software and tech industry alone. Given that businesses and organisations across industries are heavily relying on technology, AI could take over jobs in other industries as well. However, the tech industry certainly has become the victim of its creation — artificial intelligence (AI) and other industries could face same fate well with this fast paced AI revolution that is taking the control over the world.