Overview
- Amazon said it will eliminate about 14,000 corporate roles, with CEO Andy Jassy asserting the move is not driven by AI or cost cutting and is aimed at flattening management layers and speeding decisions.
- A Goldman Sachs survey of bankers projects a 4% drop in employment next year and an 11% decline within three years linked to AI adoption, with customer service, administrative and IT roles seen as most exposed.
- Academic and consultancy research finds most enterprise AI pilots produce no measurable gains, including an MIT analysis reporting 95% with no positive impact and McKinsey reporting 80% without significant improvements.
- Output quality and trust issues remain significant, as shown by a Deloitte document with invented citations and an EBU study finding AI assistants misreported news content in 45% of cases.
- Leaders fear skill erosion from overreliance on AI—43% in a Wharton survey voiced concern—and analyses indicate some firms that replaced staff with AI later regretted it, with examples such as Klarna rehiring to restore service quality.