Since AI became a prominent topic in the tech world, concerns about job displacement have circulated. However, a senior executive at Amazon dismisses these fears as a myth.
According to a CNBC report, Stefano La Rovere, director of global robotics, mechatronics, and sustainable packaging at Amazon, contends that technology such as robotics and AI does not steal jobs but rather enhances people's roles.
Dismissal of Job Displacement Myth
La Rovere added that new technology is aiding the creation of entirely new job categories, enhancing over 50,000 jobs across Europe fulfillment centers.
The e-commerce giant has installed over 1,000 new technologies across its European fulfillment center network in the last five years, with an overall investment of more than 700 million euros ($751 million).
Amazon Turning to AI to Enhance Employees' Experience
Amazon is a leader in employing robotics in its operations. In October of last year, the company unveiled two new additions: Sequoia, a Roomba-like machine that identifies and organizes inventory to expedite order processing, and Digit, a 5-foot, 9-inch, 143-pound robot developed by Agility Robotics.
Digit has sparked controversy due to its remarkably human-like design. It can walk forward, backward, and sideways, squat, bend, and use arm/hand-like clasps to move, grasp, and handle items. These abilities blur the line between machine and human, stirring debates about its implications for the future of work and robotics.
La Rovere reiterated familiar sentiments echoed by Amazon previously that robots are intended to assist employees by handling repetitive tasks, lifting heavy objects, and minimizing walking distances. As a result, employees can learn new skills, competencies, and capabilities to progress toward their career objectives.
La Rovere added that over the last years, more than 700 new categories of jobs have been created by technology, citing his own team, the Amazon robotics and AI division, which is focused on bringing automation to Amazon's vast network of fulfillment centers, which pack and prepare orders for delivery to customers.
Contradicting Sentiments About Job Displacements
While Amazon and La Rovere argue about possible job displacements, reports arguing about them circulate otherwise. In November 2023, Goldman Sachs predicted that over 300 million jobs would be lost or heavily impacted due to the rise of AI. According to Goldman Sachs, the key functions that may face severe impact because of AI and the rise of technology are legal, sales, design, office admin support, architecture and engineering, sales, business, and financial operations.
This is not the first time someone has defended Amazon's use of robots. In December, Damion Shelton, CEO of Agility Robotics, stated that the financial health of businesses employing these robots outweighed any concerns about job displacement. It is worth noting that Amazon boasts a nearly $2 trillion market capitalization, with an annual gross profit exceeding $270 billion in 2023.
La Rovere might not have read Amazon CEO Andy Jassy's recent shareholder letter, where GenAI and AI are mentioned over 30 times before discussing additional cost-cutting measures. Moreover, numerous reports detail the potential job losses resulting from AI and automation.
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