Artificial intelligence (AI) and cloud services do not immediately replace jobs, but considerably slow down the creation of new positions while reducing labor requests in all industries, warned a recent Reddit article.
As companies are counting more and more on the tools fueled by AI and cloud solutions to rationalize operations, reduce costs and minimize the need for new hires, a Reddit article has highlighted this trend, the author declaring: “AI will not eat jobs immediately. It will stagnate the growth of the current labor market.”
According to the Redditor, a large investment bank company, hesitating to use external AI models, has developed its own “LLM to help developers accelerate with coding, which has increased productivity”. Consequently, a newly initiated project which would have generally required six to eight additional developers was rather managed by the existing team.
“From now on, all other division leaders follow the same process in their projects in this company,” noted the Reddit user, signaling a broader change towards the adoption of AI between industries.
Likewise, a company based on products “completely dismissed the entire documentation team on site” and reduced its offshore workforce from 15 to 8, with plans to reduce more to 5 years. “They use an AI tool for all purposes of documentation”, eliminating the need for human workers in this function.
Beyond AI, the general adoption of cloud services leads to major structural changes within IT teams. The Reddit user, sharing his personal experience, noted that the local infrastructure previously required several teams for management, including “networking teams, management to maintain all SQL servers hosted internally, Oracle, Hadoop” servers.
However, after having migrated to Azure, “all these teams are gone”. Even transaction systems that once required internal oracle servers were moved to managed cloud services. “The new Cloud team is able to manage the same work with only 30 to 40% of the statement of previous employees where they worked for 13 years”, highlighting the significant reduction in the needs of the workforce.
Another major change occurs in customer service and frontend applications. “Chatbots for the App / Web Portal Front Service – Paid Cloud Tools. Chatbots fueled by AI replace human customer support roles, reducing costs for businesses while limiting employment opportunities in the sector.
Although AI and Cloud services do not trigger immediate mass layoffs, they “first stop new positions, removing old positions”, according to the Reddit user. Companies choose to redistribute tasks among existing employees rather than hiring new employees.
With less job opening and an increasing number of engineers in competition for roles, only the most qualified professionals are likely to obtain long -term jobs. The user plans that “only 3 of the 20” engineers may be necessary in the AI future, marking a significant contraction in the demand for labor.
