Amazon’s AI shift: Fewer jobs, smarter tools


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Summary

AI to replace jobs

Amazon CEO Andy Jassy announced the company is using over 1,000 generative AI applications which will reduce some current jobs.

Amazon invests in AI

Amazon’s 2024 report shows revenue growth and a workforce of over 1.55 million employees, with the company investing $100 billion in AI in 2025.

Other companies relying on AI

Other major companies including Klarna, Duolingo, Shopify, Intuit and Cisco are also embracing AI, either replacing human jobs.


Full story

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.

Cole Lauterbach (Managing Editor) and Harry Fogle (Video Editor) contributed to this report.
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Why this story matters

Amazon’s announcement shows how major companies are rapidly adopting AI in ways that are reshaping jobs, shifting workplace priorities and signaling long-term changes to the global workforce and economy.

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Behind the numbers

Amazon reports having over 1.5 million employees worldwide, with about 350,000 in corporate roles. The company plans to spend around $100 billion on AI and data center investments in 2025, up from $83 billion previously. Over 1,000 generative AI services and applications are in development or already operational within the company.

Policy impact

Policies regarding automation and job displacement will impact Amazon employees, including those in roles potentially affected by AI. Government and company responses—such as workforce retraining, unemployment benefits, or new regulations—may shape how workers transition and influence whether similar policies are adopted in other sectors or regions.

Terms to know

Generative AI: Artificial intelligence systems that create new content, such as text, images, or code. AI Agent: Software or tools that independently perform tasks on behalf of users. Workforce Restructuring: Changes in staff composition due to strategic shifts or automation. Automation: The use of technology to perform tasks without human intervention.

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