Artificial Intelligence Causes Job Shakeup in Tech Industry

What happens when the creators of a technology become the victims of their own invention? The tech industry is experiencing this irony as artificial intelligence (AI), its own brainchild, is leading to job displacement in the sector.

Artificial Intelligence Causes Job Shakeup in Tech Industry


  • A rising number of tech firms have cited AI as a reason for reducing their workforce, as they adapt to technological advances.
  • Companies are shifting resources to better leverage AI technology, placing a higher value on workers with AI expertise.


The fear of AI replacing human jobs has been a subject of hot debate. However, the tech industry, an erstwhile haven of job security, is already witnessing the impact of AI on employment. Some tech firms are even attributing layoffs to the rise of AI.

Key Points

  • Education tech company Chegg disclosed last month that it was laying off 4% of its workforce to execute its AI strategy.
  • IBM's CEO, Arvind Krishna, hinted at pausing hiring for roles potentially replaceable with AI in the near future.
  • Dropbox announced job cuts of around 16% of its workforce, citing AI as a reason.
  • data indicates 212,294 workers in the tech industry have been laid off in 2023 alone, surpassing the previous year's total of 164,709.
  • The average salary for a senior software engineer specializing in AI or machine learning is 12% higher than those without such expertise, according to data from


  • This trend may indicate that as AI technology advances, tech companies are forced to restructure, displacing traditional roles while creating new AI-centric roles.
  • Companies are likely to put a higher premium on workers who can leverage AI tools.
  • Traditional software engineers may face a higher risk of losing their jobs or miss out on potential salary increments.

Our Take

  • AI is causing job displacement, even in the industry that created it. It's forcing companies to rethink their hiring strategies and replace traditional roles with AI-centric ones. This raises concerns about the future job market.
  • While AI is causing upheaval in the current job structure, it is also creating new opportunities. AI isn't merely replacing humans, it's enhancing the work of humans. Workers who can use AI tools to become more efficient at their tasks are likely to be in higher demand.


AI's impact on job displacement is no longer a futuristic prediction, it's a present reality. Even the tech industry, once deemed immune to such disruptions, is feeling the pinch. However, this isn't entirely bleak, as AI also opens up new avenues for those equipped with the necessary skills to navigate the changing landscape. Therefore, the ability to adapt and learn AI tools may become critical in the future job market.

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