Summary
According to a report from MIT, artificial intelligence (AI) is mostly replacing offshore jobs right now, not U.S. jobs. While AI might replace more jobs in the future, companies are currently using it to save money by reducing outsourced work rather than cutting internal staff.
Key Facts
- AI is currently replacing outsourced jobs more than U.S. jobs.
- MIT's report states that 3% of jobs might be replaced in the short term, but up to 27% long term.
- Advanced industries like tech and media expect AI to reduce hiring in the next two years.
- Many companies are using AI to cancel outsourced labor contracts, saving money.
- Back-office automations with AI save companies a lot on expenses.
- 50% of AI budgets are going to sales and marketing tools.
- Most companies are not yet seeing returns from investments in generative AI.
- AI could help increase productivity and cut costs without large-scale job losses.
