The tech industry is seen spending the most on AI infrastructure, while simultaneously cutting thousands of jobs. The shift did not arrive quietly. For Clara Shih, former AI executive at Meta and Salesforce, it came in a moment that felt almost unreal, watching artificial intelligence systems outperform experienced employees. 'In that moment I knew that nothing would ever be the same,' she said.
That moment is now playing out across the tech industry. At Meta, recent layoffs expected to impact thousands are not just a cost-cutting exercise. Theyreflect a deeper structural change: the growing use of artificial intelligence to replace or reduce human-led work.
Artificial intelligence has evolved rapidly from a support tool into a system capable of analysis, decision-making, and execution. Tasks that once required teams, from content generation to data analysis, can now be handled by AI systems with greater speed and lower cost. At Meta, this shift is already visible. As AI tools take over repetitive and process-driven functions, the company is restructuring teams and reducing roles that are no longer essential in an AI-led workflow.
According to McKinsey & Company, organisations adopting AI at scale are redesigning operations to improve efficiency, often enabling smaller teams to deliver the same output.
The impact is particularly visible at the entry level. Data from LinkedIn shows that roles traditionally designed for early-career professionals are evolving or disappearing, as many routine tasks become automated. At the same time, employers increasingly expect new hires to be familiar with AI tools from the start. This creates a difficult environment for Generation Z job seekers, who are entering a workforce with fewer traditional starting points and higher skill expectations.
In response to these challenges, Shih launched the New Work Foundation, aimed at helping young people adapt to an AI-driven job market by providing access to tools and career insights.
The role of AIin the workplace is no longer optional. It is becoming a core requirement across industries. A survey by Writer found that employees who regularly use AI tools in their work are more likely to see career advancement, including promotions and salary increases.
This reflects a broader shift in hiring and performance evaluation. Workers are increasingly assessed on how effectively they can use AI to improve productivity, not just on traditional role-based skills.
Technology leaders remain divided on how far AI will go. Dario Amodei of Anthropic haswarned that artificial intelligence could significantly disruptwhite-collar employment. In contrast, Jensen Huang of Nvidia has argued that AI will primarily enhance human productivity.
However, developments at Meta indicate that both outcomes are already taking place. While AI is enabling higher efficiency and new capabilities, it is also reducing the need for certain roles, leading directly to workforce cuts.
Source: International Business Times UK
