Nearly 4000 People in U.S. Lost Their Jobs Last Month Because of AI: Report

Artificial intelligence (AI) is estimated to replace 85 million jobs by 2025.

AI contributed to nearly 4,000 job losses last month as interest in the rapidly evolving technology's ability to perform advanced organizational tasks and lighten workloads has increased, according to data from Challenger, Gray & Christmas.

The report released by the outplacement firm revealed that layoff announcements from U.S.-based employers reached more than 80,000 in May — a 20% jump from the prior month and nearly four times the level for the same month last year. 

AI was responsible for 3,900 or roughly 5% of all jobs lost, making it the seventh-highest contributor to employment losses in May cited by employers.

The job cuts come as businesses adopted advanced AI technology to automate a range of tasks — including creative work, such as writing, as well as administrative and clerical work. 

According to Bloomberg Intelligence analysts, The AI industry is expected to grow to more than $1 trillion fueled by major technological advancements that became apparent last fall with the launch of OpenAI's ChatGPT bot.

This is the first time AI was included in the Challenger report, but not the first time the rapidly advancing technology has made headlines for replacing humans.

In March, investment bank Goldman Sachs predicted in a report that AI could replace 300 million full-time jobs globally and affect nearly one-fifth of employment — with a particular hit to administrative and legal professions.

AI is also a concern in the TV and entertainment writers' strike that began on May 2, with writers demanding better pay and job security in addition to a near-total ban on the use of AI to produce written entertainment content.