Amazon’s AI shift: Fewer jobs, smarter tools
Amazon CEO Andy Jassy says the company’s growing use of artificial intelligence is transforming both customer experience and internal operations, and it will likely reshape the workforce. In a memo released Tuesday, Jassy said Amazon is using or developing more than 1,000 generative AI applications. While some current roles may be reduced, he noted that new types of jobs could emerge over time as AI changes the way work is done.
Amazon announces AI may replace some jobs
Jassy shared the memo with Amazon’s employees, detailing the “once-in-a-lifetime” world we are living in as AI reinvents what is possible in the world around us. He said the innovative technology will be the same reason they cut jobs.
“We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy explained. “It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company.”
From Alexa and personalized shopping tools to AI-powered seller support and advertising, the company is focused on using AI to streamline services and boost efficiency. Internally, it’s also improving forecasting, fulfillment and customer service with AI-driven tools.
Amazon’s 2024 annual report shows continued revenue growth in both North America and international markets. That expansion has contributed to a workforce of more than 1.55 million full-time and part-time employees.
As revenue climbs, Amazon is channeling significant investment into AI. In 2025, the company announced a $100 billion commitment to meet growing demand and expand its capabilities in generative AI.
More companies turning to AI first before humans
Amazon isn’t alone in using technology to replace some jobs. In 2024, Klarna announced that its AI assistant had taken over the workload of 700 full-time agents, completing tasks more efficiently and faster.
Duolingo is transitioning to an “AI-first” model, gradually phasing out contractor tasks that artificial intelligence can perform, according to an email from CEO Luis von Ahn, shared on LinkedIn. The company plans to reshape hiring, contractor use, and performance evaluations to enable employees to focus on creative work and complex issues.
Similarly, Shopify instructed employees in April to pause hiring until they assess whether AI can effectively handle the tasks. CNBC reported that staff are encouraged not only to use AI to boost daily productivity but also to explore additional ways the technology can be applied across the company.
In 2024, Intuit and Cisco also announced plans to lay off thousands of employees, shifting their focus to growing AI and integrating it into their companies.
Ella Rae Greene, Editor In Chief
