Artificial intelligence is rapidly reshaping how major companies run their operations, with some executives saying it’s already transforming the workforce. ServiceNow Inc. (NYSE:NOW) CEO Bill McDermott says AI agents are taking over repetitive, draining work—and doing it without lunch breaks or healthcare benefits.
“We’re slowing down the hiring in jobs that are, quite frankly, soul-crushing jobs,” McDermott said in a recent interview with Bloomberg, pointing to IT support as an example. He said 97% of standard software is now generated by AI, and 80% of customer inquiries are fully managed by AI agents. Security and risk management tasks, patchwork, and change management are also handled by these systems.
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“They work hard 24 by seven. You don’t have to pay them and they don’t need any lunch and they don’t have any health care benefits,” McDermott said. “AI is affordable and complements our workforce.”
While ServiceNow is still hiring, it’s adding fewer people to these support roles. McDermott predicts other well-run companies will follow the same path, reorganizing around AI and moving away from traditional 20th-century corporate structures.
Salesforce (NYSE:CRM) CEO Marc Benioff told Bloomberg in June that AI now accounts for 30% to 50% of his company’s workload, calling the trend a “digital labor revolution.” The company has restructured around AI and cut more than 1,000 jobs this year. Benioff says Salesforce’s AI operates at about 93% accuracy and is helping employees focus on higher-value tasks.
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Meanwhile, Goldman Sachs (NYSE:GS) has also warned that AI’s effects on the job market are already being felt, especially by younger workers. The bank says unemployment for tech workers ages 20 to 30 has risen nearly 3 percentage points since early 2024. That’s more than four times the increase in the overall jobless rate. According to Business Insider, Goldman Sachs Chief Economist Jan Hatzius estimates generative AI will eventually replace 6% to 7% of U.S. jobs within a decade, though many workers could find roles in other industries.
