Microsoft highlights AI gains as layoffs spark job security concerns

Microsoft says AI helped it save $500 mn, even as it slashed 15,000 jobs; Layoffs spark concerns but firm says AI is meant to aid, not replace, workers

Microsoft Corp is showcasing how artificial intelligence is reshaping its operations, even as it implements one of its largest waves of layoffs. According to a Bloomberg report, Microsoft’s Chief Commercial Officer Judson Althoff, during an internal presentation earlier this week, emphasised the growing role of artificial intelligence (AI) in enhancing workplace productivity across departments.

 

AI drives savings, boosts productivity

 

Bloomberg reports AI helped Microsoft save over $500 million in its call centres last year. The technology also led to improved employee and customer satisfaction.

 

The company has begun using AI to manage interactions with smaller customers, a nascent initiative that is already generating tens of millions of dollars in revenue. At Microsoft, AI now generates 35 per cent of the code for new products, helping to reduce development time, Althoff said.

 

The company’s GitHub Copilot tool, used by 15 million users, is a leading player in the market for AI-assisted software development. 

 

AI adoption expands across tech industry

 

Microsoft is not alone in embracing AI to cut costs and streamline operations. Salesforce Inc. has said that 30 per cent of its internal tasks are now handled by AI, allowing it to scale back hiring. Similarly, Alphabet Inc and Meta Platforms Inc. have acknowledged that AI now writes a substantial portion of their code.

 

Layoff concerns despite reassurances

 

Despite the upbeat tone on AI’s potential, Microsoft’s rapid adoption of the technology has sparked concerns over job displacement. The company has cut about 15,000 jobs this year, with a fresh round of layoffs last week targeting sales and customer-facing roles. 

 

According to the report, Althoff said that AI is intended to augment, not replace, workers. He said Microsoft’s Copilot tool is already helping sales teams find more leads, close deals faster, and boost revenue by 9 per cent.