Amid layoffs, tech giant Microsoft is saving over 500 million USD after hefty investment in AI, aims to...

Microsoft is slashing thousands of jobs across various departments. It has announced to lay off 4% of its workforce in a new round. Previously, the company laid off 6000 workers in May. Microsoft is making hefty investment in Artificial intelligence, planning to invest up to $80 billion in AI infrastructure this fiscal year, a staggering amount that is about to get compensated with cost-cuttings. 

In a recent presentation this week, Chief Commercial Officer Judson Althoff has told employees, that Artificial intelligence (AI) is helping the tech giant to save big, over $500 million were saved in call centers alone last year. He revealed that AI tools are improving productivity across many departments, from sales and customer service to software engineering, according to a Bloomberg report.

In the call centres, Microsoft has begun using AI to handle interactions with smaller customers. This has increased both employees and customer satisfaction. In Software development, AI is writing 35% of the code of new products, that have accelerated the launch timings of the products, increasing profitability. 

The tech giants like Microsoft, are aiming to shift their reliance on AI tools that are generating tens of millions of dollars, and simultaneously cost-cutting by frequent rounds of lay offs. As per reports, AI implementations have triggered anxiety among employees fearing replacement soon.

Many top executives have also been vocal about potential of AI to fast pace the work as compared to humans. Microsoft's Chief Commercial Officer Althoff has boasted the potential of AI, telling employees that it could make them more effective as sellers. Microsoft’s Copilot AI assistant has helped each salesperson closing deals quicker and generating 9% more revenue, as per reports.