What happened: Artificial intelligence has already begun replacing human jobs, with nearly 4,000 positions lost last month due to the technology, according to a new report from Challenger, Gray & Christmas. While market conditions, cost-cutting, and other factors were listed as the primary causes of layoffs, AI was cited as a contributing factor for the first time. What the numbers say: According to the report, U.S. employers announced over 80,000 layoffs in May, a 20% increase from April. AI was responsible for around 5% of the job cuts, ranking as the seventh-highest contributor. What it means: The report didn't specify which companies were behind the AI-related job cuts. Andy Challenger, the recruiting firm's senior VP, expressed surprise at how rapidly AI technology was cited as a reason and acknowledged that many more job losses are expected. The big picture: Goldman Sachs predicted in a report that AI has the potential to replace around 300 million full-time jobs worldwide and impact nearly 20% of employment, with white-collar jobs being particularly hard hit. Analysts predict that the AI industry will surpass $1T in market value in the next five years, driven by technological advancements such as ChatGPT.
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