AI is Not the Main Villain behind Tech Layoffs
Another tech company has axed its employees and once again fingers are being pointed at AI. Language learning app Duolingo, with the famous green owl mascot, has been in the news for letting go 10% of its staff. But, like many tech layoff stories attributed to the ‘AI effect’, there’s more to it than meets the eye. AI advisor, Vin Vashista took to LinkedIn to clarify that Duolingo didn’t renew 10% of its contract translation workers for 2024. Some of the remaining contractors are focused on checking the quality of the AI-generated content and translation. On a positive note, he also said that while job changes are happening, people still have the chance to learn new skills. He warned that the real mistake would be to ignore new technology instead of learning to use it. The most frequently downloaded education app is no stranger to AI. However, some Duolingo users claim that AI can’t replace the human touch, especially for language training with unique dialects with distinct nuances. A slew of new language-learning apps are experimenting with open source code to build AI tools. People around the world are trying them out to get better at languages, as reported by the BBC. But these AI chatbots still mess up sometimes, especially with languages that aren’t common or from Europe. Another problem persists, for example, US immigration officials using AI to understand asylum claims have people worried about getting things wrong. Blame it on AI Negative impacts are being discussed since the industry started experiencing the generative AI boom in late 2022. While labour leaders have genuinely been worried about the technology’s impact, companies appear to be using AI as just another reason to blame for firing their employees. The most recent instance is of Indian fintech company Paytm which laid off 1,000 employees, which is around 10% of its total, from its sales, operations. The company spokesperson stated AI as the reason but did not divulge the details of how exactly was AI replacing these jobs. “We will be able to save the targeted 10% to 15% that we had planned in employee costs, all because AI has actually delivered more than what we expected it to,” One 97 Communications, Paytm’s parent company’s CEO Vijay Shekhar Sharma told Bloomberg a month ago without mentioning the details. Paytm was one of the Indian startups which struck gold through venture capital and is now facing financial difficulties. For companies akin, it appears that laying off tons of employees and then portraying it was due to redundancy is becoming a norm. The company has reportedly been in loss at least for the past two years as per the balance sheets. Simultaneously, the company has been partnering with companies to bring in AI solutions. On-ground Report Long before ChatGPT entered our offices, an irrational panic around AI was wrongly brought into the picture by companies. With these fears amplified by the media, it is extremely difficult for the public to think about any other issue with AI apart from job loss. A report released by Goldman Sachs in May 2023 is the perfect example of the new cycle of fear mongering reporting. Goldman did not claim that AI will take away 300 million jobs entirely but rather some tasks within those jobs could be automated using AI. The report also mentions that automation doesn’t always mean people will lose their jobs as new jobs are also created because of technology. But even with clarity from researchers, the media chose to focus on the clickbait headlines. Layoffs are a reality but AI is parallelly enabling the tech honchos to restructure and the existing job roles. The tech layoffs are not just a collateral damage of generative AI becoming famous; it is a result of overhiring during the pandemic and the ongoing global economic uncertainty. Currently the AI-induced layoffs reflect more fear than the opportunity to reestablish the work culture imbued with monotonous tasks. With AI tackling task-based work, humans have the opportunity to move up the value chain, Marc Cenedella, founder of Leet Resumes and Ladders clarified while speaking to CNBC.
Goldman did not claim that AI will take away 300 million jobs entirely but rather some tasks within those jobs could be automated using AI.
Language tech app Duolingo, with the famous green owl mascot, has been in the news for laying off 10% of its staff due to AI.
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Tasmia is a tech journalist at AIM, looking to bring a fresh perspective to emerging technologies and trends in data science, analytics, and artificial intelligence.