Under Draftkings' new policy, he added, “We cannot hire anyone next year unless we already prove that we cannot do the same job with an AI agent.”
Robins and other CEOs of Tech, Finance and other sectors said in September that Marc Benioff, leader of California software giant Salesforce, eliminated 4,000 jobs thanks to AI.
Neither Robbins nor other local executives have made clear any specific plans to cut jobs. However, AI apps that can answer customer questions, assemble documents, and handle other repetitive tasks can already replace workers.
In the technology industry, AI coding assistants can reduce the need for programmers. Programmers can ask the AI assistant to write code that a veteran programmer needs to check, but may have needed multiple people in the past. A recent study from Stanford University found signs of a decline in adoption of entry-level software jobs that could be related to AI.
A survey published by McKinsey in March shows that around 78% of companies using AI in at least one business feature reported. And in a survey by 1,000 employers, Resume.com, 37% said they plan to replace workers with AI next year.
According to Brady Lewis, senior director of AI innovation at consulting firm Marketri, tech companies are the leaders of adding AI capabilities in many areas.
“It's been having a very, very impact on the tech industry,” Lewis said. But not all efforts will be successful, he added: “Some of it works, but some of it isn't.”
At Boston-based American Well, Chief Financial Officer Mark Hirschhorn appears to be an AI fan.
This year's online health company cut around 350 jobs, or 35% of its workforce, Hirschhorn said at a meeting hosted by Morgan Stanley. “We're investing heavily in AI… to replace what we have and the cost structure,” says Hirschhorn.
“We've been an innovation shop for many years, and the innovation cost hundreds of individuals,” he said. “And when we first started this year, we had over 1,000 employees. We now have around 650. We continue to see areas of opportunity that limit our cost structure.”
Hirschhorn refused to interview. However, in a statement to Earth, he said American wells are trying to train workers to use AI and increase productivity. “We are looking at ways that AI can continue to gain efficiency, do more, reduce costs, and ultimately create the best experience for all stakeholders.”
Meanwhile, in the customer support unit of Boston software company PTC, AI is “valuable in terms of cost avoidance,” said Chief Executive Neilvaur at the Citigroup meeting. “But before we say this is a lever that will bring about significant cost savings for the company, we have more work to do.”
Requesting further comment, PTC said it is a design software company that employs more than 7,000 people in offices around the world, including Seaport's headquarters.
“We believe that AI will fundamentally change how work is done and are optimistic about the long-term impact on employee productivity, cost savings and decision-making,” the spokesman said.
CEO Matthew Goldberg was at a Goldman Sachs event, where CEO Matthew Goldberg, who employed around 1,000 people in the US at the end of last year after multiple layoffs, also employed around 1,000 people in the US at the end of last year.
“This is the first year we're going to increase the efficiency and advantage of AI as part of our annual plan,” Goldberg said. “That's what everyone does.” (The company did not respond to requests for comment.)
Additionally, Cambridge Internet company Akamai Technologies is conducting around 50 internal AI experiments to see if technology can improve efficiency or create other benefits, Anthony Williams, chief officer of HR, said in an interview. The company, which helps internet sites and streaming services distribute content, employed around 5,000 people in the US and nearly 6,000 people overseas at the end of last year.
For example, Akamai developers use AI to speed up writing software for their customers. The goal is to teach employees how to use AI, rather than replacing workers, he said.
“I believe AI can improve the capabilities of our products and our people,” he said. “We are fully embraced with the movement.”
At Draftkings, co-founder and president Paul Liberman said employment that replaced AI will allow the company to expand its positions in other regions.
“We're sitting there and saying, 'Hey, we're going to get rid of the work,'” Liberman said in an interview. “I'm totally against it. I'm saying, 'How do you use this technology to make your team more efficient?' ”
The company reduced costs by using AI to generate the video footage needed to coordinate advertisements in different cities.
“What previously took weeks or months can be done in minutes or hours,” he said.
DraftKings is also looking for new employees who are familiar with the latest AI apps, Liberman said.
“We're not going to remove the need for new people graduating from school,” he said. “It really just changes the requirements to choose talent.”
Aaron Pressman can be contacted at aaron.pressman@globe.com. Follow him @Ampressman.
