Job Displacement by Artificial Intelligence: Impact on Developers’ Employment
AI is causing layoffs, but the pressure also seems to be on the people responsible for developing AI. It was reported that over 200 people working on Google’s AI products such as its chatbot Gemini and AI Overviews in search results lost their jobs. They joined the ranks of the unfortunate former employees of other companies who were also victims of the restructuring of companies that invested billions of dollars in AI development but are now struggling to see returns on that investment.
According to Wired, most of those working on Google’s AI products were contractors, not Google employees. Many of them worked at GlobalLogic, a software development company owned by Hitachi. Most of the GlobalLogic workers who were laid off from Google worked as raters to ensure the quality of AI responses. They were based in the U.S., working with English content, and held master’s or doctorate degrees in their fields of knowledge.
Reasons for layoffs, according to those laid off
Some of those laid off claim they were told that the project was undergoing reductions, but a few are skeptical of that reason. Others believe that the cuts may be related to worker protests over pay and security. Publications also reported that GlobalLogic documents indicate that the company would be using human raters to train a system that automates the rating process, causing the AI to moderate itself.
Those involved in rating Google’s AI responses are not the only ones under pressure. xAI, founded by Elon Musk, recently laid off 500 workers involved in data annotation. The layoffs appear to be part of the company’s restructuring efforts to transition from “generalist” annotators to “specialists.” With Google also laying off contractors who likely fall into the “specialists” category, the situation appears precarious and concerning.
For those working with data feeding AI tools, the situation has become challenging. Shortly after investing in Scale AI, a data labeling firm, Meta cut its staff, including 200 employees and about 500 contractors. Meta is also considering cuts in its AI department, shifting priorities to stay competitive in the AI race.
The layoffs of lower-level workers and contractors raise questions about job offers with million-dollar salaries for AI specialists. The trend seems to indicate that those performing simpler tasks are seen as replaceable, while those making significant amounts of money are often unknown in their roles. Nevertheless, their high salaries suggest they are contributing something crucial to the industry.
