Microsoft's AI Push Saves Over USD 500 Million This surge in AI adoption is leading to job displacement, particularly in support roles and departments being automated, intensifying the debate over AI's long-term implications for the workforce
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Microsoft is doubling down on artificial intelligence both as a cost-cutting tool and as a catalyst for future workforce development. The tech giant has reportedly saved over USD 500 million by using AI in its call centres, but the operational gains are also contributing to significant job reductions.
According to multiple media reports, Microsoft has begun laying off nearly 4 per cent of its global workforce, following earlier job cuts in May that affected approximately 6,000 employees. The redundancies are part of broader measures to fund the company's USD 80 billion capital expenditure plan, the bulk of which is focused on scaling up its AI data centre infrastructure.
Judson Althoff, Microsoft's Chief Commercial Officer, confirmed that AI is increasingly managing tasks that were previously handled by humans including customer service, sales support, and even software engineering. AI now contributes to writing 35 per cent of new product code, significantly speeding up time to market.
However, this surge in AI adoption is leading to job displacement, particularly in support roles and departments being automated, intensifying the debate over AI's long-term implications for the workforce.
