Major corporations are rapidly replacing human workers with AI systems, streamlining operations while raising concerns about future employment prospects.

At a Glance

• Companies including Klarna, UPS, Duolingo, Intuit, and Cisco are implementing AI to replace thousands of positions
• Duolingo CEO announced an “AI-first” strategy, phasing out human contractors in favor of AI for tasks like content translation
• Klarna’s AI chatbot now handles work previously done by 700 full-time employees
• UPS plans to cut 20,000 workers by 2025, using AI to automate tasks that previously required human expertise
• Economic pressures and investor enthusiasm for AI technology are accelerating this workforce transformation

AI Replacing Workers Across Major Companies

A growing trend of major corporations replacing human workers with artificial intelligence systems is reshaping the American workforce. Companies such as Klarna, UPS, Duolingo, Intuit, and Cisco are at the forefront of this transformation, cutting thousands of positions while implementing advanced AI solutions. This shift reflects broader economic pressures, with businesses seeking leaner operations amid inflation and fluctuating markets, while simultaneously responding to investor enthusiasm for AI technology integration.

Swedish fintech company Klarna has been particularly aggressive in its AI adoption. After eliminating over 1,000 jobs in 2022, the company invested heavily in AI systems for customer service and transaction processing. According to Klarna’s leadership, their AI assistant now handles work previously performed by approximately 700 full-time employees, marking one of the most dramatic examples of direct worker replacement by artificial intelligence in the corporate world.

Shipping Giant UPS Leads Corporate AI Adoption

UPS, one of America’s largest employers, plans to lay off approximately 20,000 workers by 2025 as part of its AI integration strategy. The shipping giant is implementing artificial intelligence systems for various functions previously requiring human expertise, including proposal generation for sales teams that once needed specialized pricing analysts. This workforce reduction represents a significant portion of the company’s operations being transferred to automated systems.

CEO Carol Tomé highlighted that new technologies, including machine learning, enabled these cuts by automating tasks like proposal generation for sales teams, which previously required human pricing experts.

Like many companies embracing AI, UPS executives frame these changes as necessary adaptations to maintain competitiveness and efficiency. The transportation and logistics company is using AI to enhance various operational aspects, from route optimization to customer service interactions, allowing the company to maintain or improve service levels with significantly reduced human staffing.

Duolingo’s “AI-First” Strategy Phases Out Human Contractors

Language-learning platform Duolingo has publicly announced its transition to an “AI-first” strategy, with CEO Luis von Ahn confirming the company will phase out contractors for work that can now be handled by artificial intelligence. This shift particularly affects content creators and translators who previously developed language learning materials for the platform. The company’s stock has benefited from this strategic pivot, reflecting investor confidence in AI-driven operations. Duolingo CEO Luis von Ahn said the company will start to phase out contractors for work that can be handled by AI.

The company’s financial performance has strengthened alongside its AI implementation. Duolingo recently raised its 2025 revenue forecast to between $987 million and $996 million, exceeding analysts’ expectations. The platform now operates on a “freemium” model with advanced AI-powered features available through subscription tiers, allowing users to practice conversations with AI chatbots and receive automated feedback on their language skills.

Tech and Financial Companies Follow Similar Path

Cisco and Intuit represent additional examples of major employers streamlining operations through artificial intelligence. Cisco plans to lay off approximately 7% of its workforce while redirecting resources toward AI capabilities and cybersecurity. The networking giant is implementing AI tools that reduce the need for human roles in network monitoring and troubleshooting, traditionally core functions requiring specialized expertise.

Similarly, financial software developer Intuit laid off about 1,800 employees in 2024, choosing to reinvest those savings in AI development for customer support, data analysis, and tax preparation services. These transitions highlight how AI’s impact extends across diverse sectors of the economy, affecting both technical and service-oriented positions previously thought to require human judgment and expertise.

Economic Forces Driving AI Adoption

The acceleration of AI adoption in corporate America gained significant momentum following OpenAI’s release of ChatGPT in late 2022, which demonstrated advanced AI capabilities to a broad audience. Economic pressures, including inflation and market volatility, have pushed companies to seek cost efficiencies through technology. Meanwhile, investor enthusiasm for AI integration often rewards companies with higher stock valuations when they announce AI initiatives.

For American workers, particularly those in roles involving routine tasks or processes that can be systematized, these corporate strategies represent a fundamental shift in employment security. While companies continue to hire for positions focused on AI implementation and oversight, the net effect appears to be fewer total jobs, reshaping workforce requirements and raising questions about long-term employment trends in an increasingly AI-augmented economy.