Summary of Key Points
This article discusses the impact of AI on employment and corporate organization. By citing examples such as Wangfeng Company's reduction in staff from 1,100 to 400 people and the changes in India's IT outsourcing industry, it illustrates how AI is altering the way companies hire and structure their teams: whereas previously AI was used to enhance employee efficiency, companies are now reengineering their organizations to use fewer employees combined with AI to accomplish tasks that previously required more manpower. The article emphasizes that AI does not replace all jobs but primarily targets those that are repetitive and standardized. True security of employment lies in roles that require complex decision-making, coordination, and accountability. Both individuals and businesses must adapt to the new "AI + human" model.
1. The Sense of Security for White-Collar Workers: From "Less Overtime" to "Potential Job Loss"
Previously, the idea of using AI meant fewer hours of overtime; now, the concern has shifted to whether jobs will disappear altogether. The most direct manifestation of this is the freezing of recruitment. When a position becomes vacant, managers first have the existing team use AI to handle it for three months, and if there are no issues with business operations, the position may be eliminated permanently. Tasks such as writing basic code, organizing reports, and responding to standard emails, which previously required many junior employees, can now be automated by AI.
For young professionals, this means fewer opportunities to enter the workplace, as companies consolidate multiple tasks into a single role, saving money that is then invested in AI models and software. AI does not suddenly take away all jobs but gradually reduces the number of positions, making it the norm for one person to handle the work of three.
2. India's IT Outsourcing Industry: Breaking the Old Model of "More People = More Revenue"
For the past 30 years, India's IT outsourcing industry has thrived on a model based on the quantity of workers and hourly billing. European and American clients would submit requests during the day, and Indian teams would work at night to deliver the results by the next day; the more employees and the longer the projects, the higher the revenue. Companies like TCS, with 580,000 employees, generated annual revenues of $30 billion. However, AI has changed this dynamic. Senior engineers using AI tools (such as programming agents) can quickly complete tasks that used to be done by junior engineers (e.g., code review and testing), leading clients to no longer pay for the same amount of work.
As a result, in fiscal year 2024, India's three major outsourcing companies (TCS, Infosys, Wipro) collectively reduced their workforce by 64,000 people, the first time in 20 years. Their stock prices also fell by more than 20%. Interestingly, their revenues did not decrease significantly, and their profit margins even increased, as AI helped them complete the same work with fewer employees while also expanding into new AI-related services (such as system upgrades and model integration).
3. Jobs That Will Not Be Replaced by AI: Those That Require Decision-Making and Accountability
AI can generate code and write contracts, but it cannot understand the rationale behind a bank's risk control rules or sign contracts on behalf of management. The truly secure jobs are those that require a deep understanding of complex situations, coordination of multiple interests, and accountability for outcomes. These include decision-makers (who determine which issues need to be addressed), industry experts (who understand the underlying logic of their field), and project leaders (who manage resources and take responsibility).
For example, while AI can suggest 10 marketing strategies, it is still humans who decide which one to adopt and who will be responsible for any issues that arise. The future risk lies not in the type of job (programmer, accountant, consultant) but in whether your work can be standardized and automated. Repetitive tasks are more likely to be replaced by AI, while roles that require thinking, judgment, and accountability are relatively safe.
4. Corporate and Personal Responses: Move Beyond Traditional Workstations and Learn to "Command AI"
For companies, simply laying off employees to save money is not enough; the key is to use AI to increase individual productivity. For instance, although TCS has fewer employees, each employee's income has increased, and its AI-related business generates annual revenues of over $2.3 billion, demonstrating a true integration of AI into its business model.
For individuals, security of employment does not lie in holding onto traditional positions but in becoming the ones who command AI. For example, instead of writing reports yourself, you can use AI to generate a draft and then be responsible for editing, verifying it, and adding business logic. In other words, the shift is from being an executor to becoming a manager of AI, using AI to handle repetitive tasks while focusing on tasks that require thinking and judgment.
Conclusion
AI does not lead to a wave of unemployment but to a reconfiguration of job roles. Repetitive and standardized jobs will decrease in number, while those that require complex skills will become more valuable. The key for both companies and individuals is to use AI as a tool, not a replacement. For the general public, the goal should be to transition from being helped by AI to commanding its operations, in order to remain competitive in the new workplace.