Why CEOs are using AI to scare workers

Chief executives are giving employees an AI fright — warning them the new technology could make many workers obsolete, while at the same time urging them to start using it right away.Why it matters: That's a scary and mixed message, and fear is generally considered to have a bad track record as a management technique. At the extremes, managers could actually wind up inhibiting workers from adapting to AI.Catch up quick: In a post earlier this week, Amazon CEO Andy Jassy offered his thoughts on generative AI. In paragraph 15, he gets to the scary bit: The transformation will likely "reduce our total corporate workforce."Jassy is echoing the message of many other leaders. JPMorgan's consumer chief recently told investors AI would allow for a 10% headcount reduction. Other companies have already blamed AI for layoffs. Meanwhile, there's a constant barrage of surveys and dark warnings about AI taking jobs.Zoom out: Here are a few explanations for the wave of hard-nosed AI messaging:Genuine belief: Executives are concerned about AI's impact. They believe employees aren't taking it seriously enough, says Brian Elliott, a leadership consultant.Some lean toward "a more balanced message," he says. They suggest they'll be slowing or stopping hiring, while imploring workers to adapt.Shopify CEO Tobi Lutke did this in an email to employees. Rather than threaten layoffs, he says using AI is now a "baseline expectation" at the company. Before any new hiring, managers would have to demonstrate that AI couldn't fill the role.Lutke ultimately posted this internal message publicly.Setting expectations: It's a way to make chief executives look more transparent, and gives them cover to conduct future layoffs without shocking employees, says Jeffrey Sonnenfeld, a professor at Yale School of Management.All this talk has an "inoculation effect," he says. "A warning with an anticipatory alert that preempts later trauma going viral."Appealing to investors: The tough talk is for Wall Street, a signal that a company is on trend. (It doesn't hurt that investors tend to like layoffs.)Talking their book: AI companies, and the firms making massive investments in the tech, have a story to sell about how valuable it is."Some of the loudest voices are the AI arms merchants," Elliott points out.They need to free up revenue to pay astronomical sums for AI power and talent. Friction point: Managing through fear doesn't usually work, decades of research has shown.Scaring employees could inspire them to action. But there are "toxic effects over the long run," as Wharton professor Andrew Carton explained in a post a few years ago.It can stifle creativity, inhibit collaboration and lead to burnout, he said."A lot of employees look at this and say, 'This is going to be my robot replacement. Why would I use this? Why would I help train this if this is going to eventually replace me in my job?'" Keith Sonderling, the deputy Labor secretary, said at an executive conference earlier this week.

Comments

World news

Chaos in Spain as locals and tourists left stranded for 14 hours in area loved by Brits

Express

‘We’ll have to arrest him’: Trump threatens jail for Mamdani in NYC and calls Biden a ‘son of a b****’ in wild ‘Alligator Alcatraz’ visit

about 4 hours ago

Everything travellers to Europe need to know about heatwave safety and your holiday rights

Independent

Comments

World news

Chaos in Spain as locals and tourists left stranded for 14 hours in area loved by Brits

French cops pictured in buggies paid for by UK but still can't stop migrant boats

Horror as investigators find nearly 400 bodies hidden in business park

Donald Trump threatens to deport US citizens if they meet one condition

Chaos in Greece as olive oil crisis threatens huge shortage

Putin reeling as Ukraine launches 'deepest' attack of war 620 miles inside Russian border

Mamdani hits back at Trump’s deportation threat: ‘We will not accept this intimidation’

Kanye West stripped of Australian visa over Heil Hitler song

Bryan Kohberger plea deal updates: Idaho murder suspect set to appear in court for hearing on murder charges

Trump jokes about immigrants being attacked by alligators during ‘Florida Alcatraz’ tour

Trump bill latest: House Republicans threaten to tank ‘Big, Beautiful Bill’ after marathon vote passes welfare cuts

Two killed in Spain wildfires as severe heatwave engulfs Europe

Europe heatwave latest: Two killed in Spanish wildfire as extreme temperatures sweep the continent

Nearly 400 human corpses found piled high at 'secret crematorium' near Mexico-US border

Elon Musk posts grovelling Trump tweet after president’s deportation threat

Mogadishu crash: Huge explosion rocks major airport

Palestine Action ban to be voted on - when, why and how it will happen

Diddy verdict live: Jury deadlocked on final, most serious count as deliberations continue for third day

Watch as millions of ‘lovebugs’ swarm hikers on South Korean mountain

Many Germans believe Frederick the Great brought potatoes to the country. It’s not true

Flights cancelled and thousands without power after Australia hit by ‘bomb cyclone’

What makes someone 'cool'? New study reveals the key to being 'fresh'

Snake on a plane! Flight delayed by two hours after 'dangerous looking' reptile found in plane's cargo hold

Seven breakout stars to watch at Euro 2025 – including a ‘Little Messi’

Costa Rica's top court seeks to strip President Chaves' immunity over corruption case

Oil-drilling ship capsizes in Gulf of Suez, killing at least 4 crewmen, Egypt says

Russia ramps up offensives on 2 fronts in Ukraine as both sides seek an advantage

Venezuelan lawmakers declare UN human rights chief persona non grata

Hurricane Flossie gains Category 3 strength in the Pacific while remaining off Mexico's southwest coast

Managers are using AI to assess raises, promotions, even layoffs: New study

Inside secluded farm where 'ghost kids', 6 and 9, lived 'completely unknown'

Son of El Chapo who ran cartel faction cuts plea deal in drug trafficking case

Heathrow Shutdown Caused by Problem Left Unfixed for Years, Report Says

Inside 'human slaughter house' prisons with 'execution parties' and horror torture

Ibiza declares war on sunbeds as locals slam 'colonisation'

Scotland will only be safe when we have independence

We can't afford to risk another 'one we got away with' when Trump comes calling

‘We’ll have to arrest him’: Trump threatens jail for Mamdani in NYC and calls Biden a ‘son of a b****’ in wild ‘Alligator Alcatraz’ visit

Everything travellers to Europe need to know about heatwave safety and your holiday rights

What is a heat dome? Weather system explained as UK and Europe hit by sweltering temperatures

Rare weather phenomenon grips Portugal beach during heatwave

Trump says Israel has agreed conditions for 60-day Gaza ceasefire

Boy, 9, and girl, 7, found in nappies and ‘unable to speak’ hidden away on remote farm

Turkey detains 120 opposition officials including former mayor

Snake on a plane delays a flight in Australia

Leader of Tibetan Buddhism says he won't be the last Dalai Lama

A complete guide to Women's Euros 2025

Dalai Lama Tightens Grip on Reins of Succession in the Face of Chinese Pressure

Dalai Lama Succession: How the Next Tibetan Spiritual Leader Will Be Chosen

Full list of European countries under heatwave alerts as mercury soars to 46C

Paramount agrees to pay Trump $16 million to settle ‘60 Minutes’ lawsuit CBS News called ‘meritless’

Trump claims Israel has agreed to 60-day ceasefire in Gaza

Europe heatwave latest: Eiffel Tower summit closed as continent faces record-breaking temperatures

Australia bomb cyclone live: Flood emergency warnings issued as strong winds leave thousands without power

I gave up on transferring my pension to one pot as it was too complicated

Jordan Nobbs: Nine things you didn’t know about the Lionesses

K-pop is coming for your kids – embrace it

Steve Coogan: ‘Keir Starmer makes me admire Thatcher – at least she had a point of view’

I used to hate watching Novak Djokovic at Wimbledon – but now I’m a convert

The no-fly French holiday with sunshine, cobbled cities and an Art Deco pool