Google Contemplates Significant Layoffs as AI Automates Ad Creation

A recent report reveals that Google is considering a massive downsizing within its advertising unit following the considerable success of AI-driven ad creation, rendering approximately 50% of unit employees “replaceable by intelligent systems.”

According to The Information, the American company is exploring the possibility of redistributing or laying off staff within its advertising sales sector as automated systems demonstrate superior efficiency in executing these tasks.

Google introduced various new advertising services for its advertisers, such as the Performance Max feature, allowing advertisers to create ads with different promotional messages and diverse designs effortlessly. Additionally, the content can dynamically evolve based on the audience’s nature.

The report indicates that the widespread adoption of the “Performance Max” feature by Google’s advertisers has made the idea of relying on Google employees for assistance unnecessary.

The contemplated decision could impact more than half of the total employees in the advertising sales unit, currently numbering 30,000 employees.

The prevailing trend in the business market, driven by the unprecedented surge in generative AI technologies, is increasingly integrating artificial intelligence systems into routine daily tasks, ensuring “high efficiency, precise task execution, and rapid task completion.” However, this trend is expected to result in the downsizing of a considerable number of employees.

In an interview with Bloomberg, Arvind Krishna, CEO of computing giant IBM, stated that the company decided to slow down or halt hiring in sectors where tasks can be accomplished through artificial intelligence. He noted that this decision is expected to impact 30% of the company’s jobs over the next five years, equivalent to 7,800 positions.

A report published by Goldman Sachs earlier this year revealed that artificial intelligence would be the cause of approximately 300 million job disappearances. Another study by the McKinsey Institute for Research confirmed that the impact of artificial intelligence on human jobs would be faster than anyone could imagine.