Anne Hoecker has shared her thoughts on the impact of AI.
Artificial intelligence (AI) is creating “step changes in productivity”, according to a leading industry consultant.
Major tech companies including Google, Amazon, Meta and Pinterest have all cited AI as the driving force behind recent rounds of mass redundancies, with bosses claiming the technology is allowing their firms to do more with fewer staff.
Speaking about recent job cuts, Anne Hoecker, a partner at Bain who leads the consultancy’s technology practice, told the BBC: “Some of it is that the narrative is changing, some of it is that we really are starting to see step changes in productivity.
“Leaders more recently are seeing these tools are good enough that you really can do the same amount of work with fundamentally less people.”
However, tech investor Terrence Rohan, who has sat on numerous company boards, suggested that the AI framing is not always the full story.
He said: “Pointing to AI makes a better blog post. Or it at least doesn’t make you seem as much the bad guy who just wants to cut people for cost-effectiveness.”
Hoecker added that cutting jobs also signals discipline to nervous investors, many of whom are worried about the enormous cost of AI development at the moment.
The industry expert said: “Maybe laying off people isn’t going to make much of a dent in that bill, but by creating a little bit of cashflow, it helps.”
AI ‘is creating step changes in productivity’
