Walmart, the US's largest private employer, announced on Tuesday that it plans to automate large parts of its warehouses and stores within three years. This is in line with the introduction of artificial intelligence technology to the economy, which will increase efficiency. However, this move also threatens millions of jobs.
The aforementioned is a
The mega-retailer, which has more than 1.6 millions US employees, said:
By the end fiscal year 2026
Walmart estimates that around 65% of its stores will be automated.
The average unit costs could increase by 20%.
Walmart will reduce the need for human workers as it automates its stores and warehouses. The retailer did note that a reduction in workforce could result in higher wages for remaining employees.
One of the roles that will be affected by the implementation of changes in the organization is the role that you'll play.
require less physical labor
But have a higher pay rate.
Walmart has not provided specifics on the possible reduction in workforce due to automation through 2026.
Jan Hatzius, a Goldman analyst, recently told clients, "roughly two thirds of the current jobs in US and Europe are at risk of AI automation and that generative AI can substitute up to one fourth of current work." Our estimates suggest that generative AI may expose up to
Automatism to automate 300 million full-time positions
AI could automate up to "two thirds" of occupations.
Translation: One-third of one billion layoffs in the US and Europe.
Pro subscribers can read GS report here
Imagine it as the roboticization of the services sector.
It's concerning that Amazon, the second-largest employer in America, is also accelerating its automation. It is clear that a wave of layoffs is coming, but when will the mass layoffs lead to a rash of angry people? We believe the government will implement universal basic income in order to prevent future layoffs from rioting.