The Covid-19 pandemic has forced many companies to resort to layoffs via Zoom, but with the current technology craze, could mass terminations devised by Artificial intelligence be the next step? French startup Pigment SAS has been testing its generative Artificial intelligence tool, Pigment AI, which is specifically designed for chief financial officers. The software is based on OpenAI technology and places a chatbot inside spreadsheets and dashboards used for financial planning.
Pigment Artificial intelligence is designed to analyze a company’s data and provide answers to questions such as “What if we launch our new product three months in advance?” or “What do I do to double my revenue in the next year?” The software is expected to boost a company’s bottom line by removing the uninteresting part of the work, according to Romain Niccoli, co-CEO of Pigment.
As more businesses scramble to incorporate the latest Artificial intelligence to boost their bottom line, Pigment’s tool may be of interest to many. The software’s chatbot can answer questions such as “Why are our current projected people costs higher than the approved 2023 plan?” and provide recommendations that may include cutting people costs or cutting people.
IBM’s CEO sees 30% of back-office functions going away in the next five years and has paused hiring for such roles. Microsoft Corp.’s 365 Copilot for Excel may reduce the need to hire data analysts and other spreadsheet crunchers. Meanwhile, Pigment is testing its Artificial intelligence tool with a handful of customers and has raised $164 million in funding since forming in 2019. The startup said its annual recurring revenue increased sevenfold last year.
Although Artificial intelligence could inform a company’s decision to lay off people, ultimately, it’s a human who will make the call, according to Niccoli. “It’s just making sure you understand the consequences,” he said. “It will not decide for you.”
Despite concerns about Artificial intelligence, billionaire venture capitalist Vinod Khosla said that slowing down could cause a different set of problems. The White House is backing new rules, and the UK’s antitrust watchdog launched a review amid fears of the consequences of AI’s deployment on the battlefield.
If mass terminations devised by Artificial intelligence become a reality, the affected individuals may not even be aware that the decision was made with the help of Artificial intelligence. However, companies may need to consider the ethical implications of using Artificial intelligence in decision-making, particularly when it comes to layoffs, and ensure that they prioritize the well-being of their employees.
As companies continue to seek ways to optimize their operations and cut costs, the use of Artificial intelligence technology in the decision-making process has become increasingly prevalent. The Covid-19 pandemic has accelerated this trend, as remote work and virtual meetings have made it more difficult for managers to assess employee performance and make difficult decisions about layoffs and restructuring.
The use of Artificial intelligence tools like Pigment AI, which can analyze financial data and provide recommendations for cost-cutting measures, could make the process of layoffs more efficient and less subjective. However, there are concerns that relying too heavily on AI to make these decisions could lead to unintended consequences.
For example, an AI algorithm may recommend cutting staff in a particular department based on cost savings alone, without taking into account the potential impact on morale or the long-term success of the company. Additionally, there are concerns about the potential for bias in AI decision-making, particularly if the algorithms are trained on data that reflects historical discrimination or other problematic practices.
Despite these concerns, the use of AI in workforce management is likely to continue to grow in the coming years, as companies seek to stay competitive in a rapidly changing business environment. It will be important for companies to carefully consider the ethical implications of these technologies and ensure that they are used in a responsible and transparent manner.
