AI vendors are increasingly emphasizing cost savings and headcount reduction as key benefits of their technology. OpenAI's announcement of pricier service tiers and Microsoft's promotion of AI's ability to replace human workers signal a shift in priorities.
AI vendors are starting to say the quiet part out loud. As technology advances, it seems more about controlling costs and headcount.
Discussing the possibility of pricier tiers for the company's services and justifying four-figure tiers – quite a jump from the $200 tierThis raises the question: why recruit somebody if an AI can assist lawyers as a virtual paralegal, help academics with their work, or do something as mundane as booking travel? Friar reportedly said:'How might you have had to finance that otherwise? Would you have had to go out and hire more people? How do you think about the replacement cost to some degree, and then how do we create a fair pricing for that?'that Microsoft had begun to highlight the payroll benefits of AI as allowing enterprises to slow or stop hiring staff while making it easier to lay off workers and still maintain productivity. The public face of the Windows giant's marketing is all about helping employees save time, but it is not hard to see how some enterprises might look at all that time supposedly saved and then at their headcount... British watchdog has 'real concerns' about the staggering love-in between cloud giants and AI upstartsMicrosoft partners with labor unions to shape and regulate AI While you'd expect the major tech vendors to talk up the productivity benefits of the AI services they've poured so much money into, employers have been thinking about how introducing the technology could mean potentially paying fewer human beings. In 2023, Philip Jansen, then CEO of BT,that 10,000 staffers could go as a result of automated digitization.'We will be a huge beneficiary of AI,' he said.during an interview with former British prime minister Rishi Sunak that'there will be come a point when no job is needed' and'AI will be able to do everything.' The pricier tier announced by OpenAI, along with Microsoft's reported promotion of AI's headcount-reduction benefits, signals a shift in prioritie
AI Automation Cost Reduction Headcount Job Displacement
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AI Vendors Embrace Cost Savings and Headcount ReductionAI vendors are increasingly emphasizing the cost-saving and headcount reduction potential of their technology. Discussions around pricier AI tiers and the ability of AI to replace certain roles, such as virtual paralegals and travel bookers, highlight this shift in focus. While marketed as time-saving tools, some enterprises may see AI as a means to reduce staffing costs.
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