AI Automation Has a Benefit … for Some
September 26, 2024
Humanity’s progress runs parallel to advancing technology. As technology advances, aspects of human society and culture are rendered obsolete and it is replaced with new things. Job automation is a huge part of this; past example are the Industrial Revolution and the implementation of computers. AI algorithms are set to make another part of the labor force defunct, but the BBC claims that might be beneficial to workers: “Klarna: AI Lets Us Cut Thousands Of Jobs-But Pay More.”
Klarna is a fintech company that provides online financial services and is described as a “buy now, pay later” company. Klarna plans to use AI to automate the majority of its workforce. The company’s leaders already canned 1200 employees and they plan to fire another 2000 as AI marketing and customer service is implemented. That leaves Klarna with a grand total of 1800 employees who will be paid more.
Klarna’s CEO Sebastian Siematkowski is putting a positive spin on cutting jobs by saying the remaining employees will receive larger salaries. While Siematkowski sees the benefits of AI, he does warn about AI’s downside and advises the government to do something. He said:
“ ‘I think politicians already today should consider whether there are other alternatives of how they could support people that may be effective,’ he told the Today programme, on BBC Radio 4.
He said it was “too simplistic” to simply say new jobs would be created in the future.
‘I mean, maybe you can become an influencer, but it’s hard to do so if you are 55-years-old,’ he said.”
The International Monetary Fund (IMF) predicts that 40% of all jobs will worsen in “overall equality” due to AI. As Klarna reduces its staff, the company will enter what is called “natural attrition” aka a hiring freeze. The remaining workforce will have bigger workloads. Siematkowski claims AI will eventually reduce those workloads.
Will that really happen? Maybe?
Will the remaining workers receive a pay raise or will that money go straight to the leaders’ pockets? Probably.
Whitney Grace, September 26, 2024
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