Artificial intelligence is rapidly reshaping how major companies run their operations, with some executives saying it's already transforming the workforce. ServiceNow Inc. (NYSE:NOW) CEO Bill McDermott says AI agents are taking over repetitive, draining work—and doing it without lunch breaks or healthcare benefits.
AI Steps Into Support Roles
"We're slowing down the hiring in jobs that are, quite frankly, soul-crushing jobs," McDermott said in a recent interview with Bloomberg, pointing to IT support as an example. He said 97% of standard software is now generated by AI, and 80% of customer inquiries are fully managed by AI agents. Security and risk management tasks, patchwork, and change management are also handled by these systems.
Don't Miss:
- The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — and you can too at just $2.90/share.
- Bill Gates Warned About Water Scarcity. This Award-Winning Device Just Might Fix It — And You Can Invest Early
"They work hard 24 by seven. You don't have to pay them and they don't need any lunch and they don't have any health care benefits," McDermott said. "AI is affordable and complements our workforce."
While ServiceNow is still hiring, it's adding fewer people to these support roles. McDermott predicts other well-run companies will follow the same path, reorganizing around AI and moving away from traditional 20th-century corporate structures.
Industry-Wide Shift
Salesforce (NYSE:CRM) CEO Marc Benioff told Bloomberg in June that AI now accounts for 30% to 50% of his company's workload, calling the trend a "digital labor revolution." The company has restructured around AI and cut more than 1,000 jobs this year. Benioff says Salesforce's AI operates at about 93% accuracy and is helping employees focus on higher-value tasks.
Trending: ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.
Meanwhile, Goldman Sachs (NYSE:GS) has also warned that AI's effects on the job market are already being felt, especially by younger workers. The bank says unemployment for tech workers ages 20 to 30 has risen nearly 3 percentage points since early 2024. That’s more than four times the increase in the overall jobless rate. According to Business Insider, Goldman Sachs Chief Economist Jan Hatzius estimates generative AI will eventually replace 6% to 7% of U.S. jobs within a decade, though many workers could find roles in other industries.
McDermott praised the president's recent AI action plan, saying, "We need less regulation and more innovation." He said the government should run more efficiently and transparently, adding that ServiceNow has worked in the public sector for years to achieve those goals.
See Also: Kevin O'Leary Says Real Estate's Been a Smart Bet for 200 Years — This Platform Lets Anyone Tap Into It
Warnings Over AI’s Human Cost
Still, the idea of replacing large numbers of human jobs with AI is deeply troubling to labor advocates, economists and even tech executives. They warn that corporate enthusiasm for machines that never tire, never demand raises, and never get sick could strip millions of people of their livelihoods. As former Google X executive Mo Gawdat put it in a podcast recently, "CEOs are celebrating that they can now get rid of people and have productivity gains and cost reductions because AI can do that job. The one thing they don’t think of is AI will replace them, too."
Read Next: In a $34 Trillion Debt Era, The Right AI Could Be Your Financial Advantage — Learn More
Image: Shutterstock
