Nearly 4,000 people lost their jobs in US due to AI in May: Report

Around 4,000 people working in the tech sector lost their jobs to AI in May, a report suggests. In total, around 80,000 people were laid off last month for various reasons.


According to a recent report, the tech sector experienced significant job losses in May, with approximately 4,000 individuals losing their jobs due to the impact of artificial intelligence (AI). The total number of layoffs across various industries reached 80,000 during that month. The introduction of AI tools such as ChatGPT, Bard, and Bing has further contributed to the volatility of the tech job market. OpenAI released ChatGPT in November 2022, followed by Google’s Bard and Microsoft’s Bing in February of this year. These AI tools have garnered substantial attention and adoption within the tech industry, leading to job displacements. The increasing utilization of AI by companies has caused a shift in the employment landscape.

A Business Insider report, which cited the monthly report from Challenger, Gray, and Christmas, revealed that AI was responsible for around 3,900 job cuts out of the total 80,000 layoffs in May. Economic conditions, cost-cutting measures, company restructuring, and mergers and acquisitions accounted for the remaining job losses. The report emphasized that this was the first time AI was identified as a significant contributor to layoffs, and all the affected individuals were from the tech sector. Throughout the year, from January to May, approximately 400,000 people lost their jobs, indicating the severity of the situation.

In a survey conducted by in February, it was discovered that several US-based companies had begun implementing ChatGPT in place of human workers. The survey involved 1,000 business leaders, nearly half of whom confirmed that they were using ChatGPT, leading to the replacement of employees within their organizations. ( The survey highlighted that business leaders were generally impressed with ChatGPT’s performance, with 55 percent describing the quality of its work as excellent and 34 percent as very good.

The rapid progress in AI research and the rapid development of AI-powered bots like ChatGPT have raised concerns about the potential obsolescence of human workers in knowledge-based industries. Stacie Haller, the Chief Career Advisor at, emphasized that workers should consider the implications of this emerging technology on their current job responsibilities. The adoption of ChatGPT by employers reflects a growing trend of streamlining job responsibilities through AI.

Sam Altman, the creator of ChatGPT, mentioned in a March interview that one area where ChatGPT could potentially replace human workers is customer service. This further illustrates the transformative impact of AI on various job sectors.

Overall, the rise of AI tools like ChatGPT, Bard, and Bing has disrupted the tech job market and contributed to a significant number of job losses. As AI continues to advance, it is crucial for both employers and employees to adapt and prepare for the changing employment landscape.

While AI offers opportunities for increased efficiency and productivity, it also raises questions about the future of work and the need for workforce adaptation. Business leaders have shown a keen interest in leveraging AI tools like ChatGPT to streamline job responsibilities, as demonstrated by the survey findings. However, it is crucial to consider the broader implications of these technological advancements on employment and the well-being of individuals affected by job losses.

As the tech job market continues to evolve, it becomes imperative for both employers and employees to embrace a proactive approach. This includes upskilling and reskilling efforts to adapt to the changing demands of an AI-driven landscape. Moreover, policymakers and organizations should prioritize initiatives that facilitate a smooth transition for workers affected by AI-related job displacements, promoting reemployment and fostering inclusive growth.

While AI undoubtedly presents challenges and uncertainties, it also holds great potential for innovation and economic growth. By embracing responsible AI practices and investing in human capital development, we can strive for a future where AI and human workers coexist harmoniously, leveraging the strengths of both to drive progress and improve society as a whole.

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