Key facts
- Teradata and TTEC are cutting employee compensation and benefits to fund AI investments.
- Walmart has implemented usage limits on its internal AI coding assistant, Code Puppy.
- Flexport has launched a 90-day in-house AI training program for employees.
- Mercor hired 30,000 contractors last year.
- Meta will allow employees to pause workplace tracking software for 30 minutes daily.
- Over 1,500 employees signed a petition against Meta's workplace tracking system.
- Up to 84% of US high school students used AI for schoolwork by mid-2025.
- Nearly half of Gen Z believe AI's workforce risks outweigh its benefits.
- Only 19% of employees feel confident using AI tools, according to an Achievers report.
- Starbucks is tying a portion of its technology bonuses to the use of artificial intelligence.
Companies are implementing AI technologies with diverse effects on their employees and operations. Teradata and TTEC are openly reducing staff compensation and benefits to finance AI investments, marking a shift towards candidly linking AI spending with workforce cost reductions. Walmart has placed limits on its internal AI coding assistant, Code Puppy, to curb redundant requests and control expenses, encouraging employees to utilize existing solutions and scale successful ideas. Flexport is offering a 90-day in-house AI training program for staff across departments, teaching them to use LLMs and AI agents for workflow automation, with participants tasked with creating custom tools for their roles. Starbucks is integrating AI by linking a portion of its technology bonuses to AI usage.
In the financial sector, traders are leveraging AI tools like ChatGPT and Claude to automate tasks, drastically reducing the time required for certain operations. However, the productivity gains are inconsistent; while some traders report significant performance improvements and high returns, others find that saved time is redirected to new projects, resulting in no overall reduction in work hours. Mercor, a startup focused on AI training for white-collar jobs, hired 30,000 contractors last year, though its methods have drawn scrutiny. Meta is responding to privacy concerns and employee backlash by allowing staff to pause its workplace tracking software, which monitors keystrokes and mouse activity, for 30 minutes daily, following a petition signed by over 1,500 employees.
The impact of AI on education and workforce readiness is a growing concern. By mid-2025, an estimated 84% of US high school students are expected to use AI for schoolwork. Despite this widespread use, concrete evidence of its positive impact on learning is scarce. Furthermore, Gen Z's initial excitement about AI has diminished, with nearly half believing its workforce risks outweigh its benefits. A report by Achievers indicates that only 19% of employees feel confident using AI tools, highlighting a significant gap between corporate AI adoption and employee preparedness. A Deloitte executive also noted that negative perceptions are deterring new graduates from using AI, even though most college students regularly employ these tools.
Professionals are navigating career transitions into AI roles, with five individuals sharing their diverse paths from fields like law and UX design to engineering. These experiences suggest that while technical skills are important, backgrounds in humanities and communication, combined with continuous learning and portfolio development, are also crucial for entering the AI job market. The AI job market is expanding, with companies like Mercor hiring a large number of contractors.