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Is ChatGPT and Layoffs are Related?

Last Updated : 10 Jul, 2023
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Recently, Chat GPT and Layoffs in various companies have grabbed a lot of attention. Ever since the launch of ChatGPT in November, it has made people curious about its use. Where at the one hand people are happy about creating Chatbots, thinking that these AI-generated platforms will make things easier for them and help them grow. While on the other, people are concerned about their replacement due to ChatGPT, which has left thousands of jobs under the shadow. 

Is ChatGPT and Layoff are Related

Although, since November 2022, many big companies have laid off their employees including, Amazon (18000), Accenture (19000), Alphabet (12000), Disney (7000), Meta (10000), etc. Apart from these technology firms, many advertising and creative writing firms have also taken these steps, where they have fired their content creators and are now taking the help of ChatGPT to write. However, confusion still persists that are these layoffs were done due to ChatGPT or not.

Thus, it is clear that many things have changed with the advent of ChatGPT and many questions have also surrounded the chatbot. Therefore, to address this ongoing trend or issue, we have compiled this article where we will help you by resolving numerous doubts. So, first thing first, let’s understand the basics of ChatGPT & how is it related to layoffs.

What is ChatGPT?

Introduced by OpenAI, ChatGPT or Generative pre-trained Transformer is a class of language models that is well capable of handling large volumes of data sets in a flick of seconds. Unlike traditional chatbots, ChatGPT is much more interactive & intuitive in terms of accuracy, and engagement. It has been trained using AI algorithms and is well capable of providing large sets of data as requested by the user. To learn more about ChatGPT, refer to this article: What is ChatGPT by OpenAI – Explained!

How are ChatGPT and Layoffs Related?

In this season of recession, people all over the world have been affected. Many companies are bidding goodbye to their employees however, it is not only the only reason, ChatGPT is also considered responsible for the same. Day since its launch and till now ChatGPT is becoming more and more advanced and it is also being speculated that in many industries it might become the major factor for job loss. 

According to a recent survey, it has been revealed that more than half of the companies present in the market are relying on ChatGPT thus, causing layoffs. The survey was conducted in February 2023 and involved more than 1000 leading companies and the result which came out was painful. Almost 49% of the companies are using ChatGPT and the remaining 30% are planning to use the same in the future. 

Although, the new technology is currently in the new phase but, its growth will definitely affect the current job responsibilities of numerous employees including content writing, coding, customer support, etc. The companies that have fired their employees due to ChatGPT are said to have saved almost $75,000. Also, according to almost 55% of business leaders, the work done by ChatGPT is quite good and has very less mistakes. 

It has been seen that ChatGPT can do numerous tasks and automate several processes but still, it cannot replace humans completely in many fields. For example, talking about advertising, ChatGPT can write captions or content with give instructions but cannot create unique ideas like humans. Furthermore, ChatGPT can complete basic coding tasks, but cannot solve complex coding problems. Hence, the requirement for technical experts will not be gone for a decade. 

Moreover, ChatGPT might result in the loss of jobs in various industries but cannot replace humans completely in the near future. And humans will have to adapt to this change and work accordingly it maintain and acquire the relevant market-changing skills. 

Jobs That Are At Risk Due To ChatGPT!

We mentioned above that ChatGPT cannot replace humans completely but still has put many jobs at risk due to its advent. So let’s see the list of jobs that can affect with the introduction of ChatGPT:

1. Content Writing Jobs

Content writing jobs cover a broad section, related to media, advertising, technical writing, blogging, journal article writing, and many more. These jobs are much more likely to be at risk due to the advent of ChatGPT because AI is able to write, read and comprehend tasks very easily, thus, making the work done by humans much easier. 

Many content companies have also laid off employees and using ChatGPT to create unique content for them. For example, Buzzfeed, a content-related company also announced that they will be using tech ChatGPT in order to create new content. Hence, it has been confirmed that ChatGPT has marked these content writing jobs under that risk category.  

2. Tech Jobs

The second category that falls under the risk category is technology, it includes jobs related to coding, software engineers, data analysts, computer programmers, etc. Nowadays, programming is a trending skill but yes in risk of being taken over by AI. ChatGPT can easily displace many tech-related jobs due to its accuracy in completing tasks. In many cases, it has been seen that ChatGPT can code faster than humans hence, the work can be done with less number of employees. 

3. Human Resource Jobs

The major tasks of Human Resources or HR are to recruit candidates for the company and perform daily routine activities such as answering queries and providing necessary reports. But these administrative and operational tasks can also be done by ChatGPT and that too faster and cheaper. 

However, this role cannot be replaced completely but yes the senior HRs can use these techniques to ease their work thus, not relying on their juniors to complete several tasks. Though ChatGPt can provide, efficiency, effectiveness, and availability, still it lacks behind in a few aspects such as lack of human touch, data privacy, natural language, etc.

4. Legal Jobs

As it was recently in the news that now the Prime Minister of India, Narendra Modi has stated that the use of AI in legal activities in current times can be very useful. However, AI is being used for legal assistance but yes not completely but partially. However, AI cannot fully automate this job as there is the requirement of understanding the client and his/her needs. But, it can definitely boost productivity by making the work easier and better. Hence, the usage of chatbots can become very common in the near future, reducing the number of jobs for humans. 

5. Marketing Jobs

AI is good at predicting data and numbers thus, the job of market research analysts can be partially done by ChatGPT creating a risk for humans. The Market research analyst has the job of collecting data, analyzing data, identifying the ongoing trend, etc. And all these jobs require a huge man force, while on the other hand, ChatGPT can do all this work single-handedly. 

Also, with its increasing usage in advertising ChatGPT is also being used for effective marketing techniques. 

Chatbots and Their Influence on Future Layoffs

Many companies are already choosing ChatGPT over humans and it has also been said that by the end of the year 2023 most probably 33% of business leaders will start using ChatGPT in order to sort out their work and within 5 years approx. the number will rise up to 63%. Also, another reason for using this AI chatbot is that it is cost-effective and is reducing up to $75000 hence, there can be more layoffs in the future due to ChatGPT. 


Thus, by reading this article we can conclude that ChatGPT is one of the reasons for layoffs in some specific industries thus creating a huge impact on the market. However, in certain industries, the AI chatbot has become a helping hand making them work more efficiently and can also produce better job opportunities in the future. 

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1. Are companies adopting ChatGPT?

Yes, there are numerous that are adopting ChatGPT in order to make their work a bit easier and also to improve customer experience. Many companies including Bain & Company, Morgan Stanley, Duolingo, Snapchat, Salesforce, Shopify, etc.

2. Why and in which companies the employees are banned from using ChatGPT?

Companies like Amazon, JP Morgan, Accenture, Verizon, etc have banned their employees from using ChatGPT as according to them it can cause the leak of sensitive information and can cause the loss of important info by putting it into a chatbot. 

3. Does ChatGPT provide a reliable source of information?

There have been many concerns regarding the integrity of ChatGPT and also people relying so much on a chatbot. However, still, many companies are using it as the main source for completing the task. 

4. How often is ChatGPT being used by business leaders?

Business leaders are using ChatGPT for most of their work these days, for example:

  • Coding: 60-70%
  • Writing content: 55-60%
  • Customer Support: 60-65%
  • Creating documents: 52%

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