While AI may enable some workforce reductions, DiLorenzo doesn’t see huge AI-driven cuts in IT budgets and teams in the near future. Even as many organizations infuse AI into software development and tech support teams, most enterprise leaders DiLorenzo speaks with see a slowdown in hiring new developers and IT support staff, rather than layoffs for current staff, he says.
“The encouragement that I give is that people who know AI will replace those that don’t,” he adds. “Whether it’s a functional or a technical job, it’s an important skill set to have. If a software developer is not using AI development tools, it’s going to be a challenge.”
Job cuts already happening
But in the weeks leading up to the release of the Deloitte report, Meta, Salesforce, Microsoft, Dell, and Intel collectively announced more than 24,000 job cuts related to AI, and Amazon CEO Andy Jassy predicted future job losses at his own company — and across the work world — as AI creates efficiency gains. It’s unclear how many of the layoffs were in IT departments, but about 800 of 2,000 jobs lost at Microsoft in May were software engineers.
