A major decrease in output has resulted from the axing of workers at several Israeli hi-tech companies, a consequence of the previously blooming prosperity of foreign investment throughout 2021 being significantly reduced due to economic difficulties.
In the face of changing global conditions, as any outlying data point recedes to its average via regression to the mean, hi-tech companies have had to cut some of their excess weight accrued during that prior period’s maximum output.
The surge in AI technology, which seems to have been accelerated by generative AI, has seen a corresponding rise in layoffs. This trend suggests that the boom in neural network-driven development has become more noticeable and widespread.
TImplementingmore refined AI technology begs whether it could reduce any harmful effects felt due to a falling Israeli hi-tech industry. Could these AI technologies offset losses that may come with this sector’s regression?
Generative AI presumably has raised certain concerns where it could completely automate traditional labor practices. However, Itai Margalit (area VP and head of sales) holds that such a move can be gainful, leading to amplified productivity gains, thus resulting in higher profits.
Itai Margalit says:
“Market competition is fierce. Competitors won’t go away, and by being able to do things more efficiently in a more automated and quicker way, that does not mean that you need less people; it means that you will be able to do more with what you have.”
Adrianne Margalit has commonly voiced the belief echoed amongst AI specialists: That, despite it not likely to supplant people anytime soon completely, AI will offer a major advantage to those who implement its use compared to those who do not.
Itai Margalit says:
“I don’t think AI is necessarily a direct counter to the current [layoff] situation, but when an organization is efficient and well optimized in their operations, then the capabilities they have during downtimes — as we’re experiencing today — are far greater than those that are not using these capabilities.”
No matter the corporate climate, utilizing practical resources is the best method to ensure success. From harsher to gentler times, key tools can give a business an edge and help it stand out.
Itai Margalit continues to say:
“During better times, organizations using these types of technologies were able to grow faster, and growth before the current period was the Holy Grail, the most important thing.”
“Now, efficiency or profitability is the most important thing. So using this tech becomes much more profitable, because you will need less resources — not in a sense of laying off people but actually less resources to do the same amount of work that you have been doing before — and you’ll still be able to show growth even when you are in a downtime period.”
How Artificial Intelligence Is Transforming Software Development
Using AI within a company’s workflow can change its workforce composition. According to CloudZone’s CTO, Oleg Gohman, utilizing these technologies for consumer-facing operations could affect the personnel needed to manage such processes.
Oleg Gohman says:
“Using AI in order to generate technical answers to customer tickets means you need less people to support your customers.”
“It allows you to shorten the time to resolution and time to answer and, of course, have a direct impact on the size of the required team.”
He noted that AI integration might lead to a bigger team size regarding backend management because of the development advancements it brings. In other words, increased AI utilization would supply great prospects, meaning more support will be required.
Oleg Gohman went on to say:
“In the internal development team, we are not looking to reduce the number of employees or to minimize the capacity of the team. We are looking to add additional features for our customers.”
Gohman noted that team size is unlikely to alter despite an increase in the workforce due to the potential of adding extra features. This increase provides more opportunities for growth and advancement.
AI will open the doors for developers to use their enhanced capabilities and explore never-thought-of programming realms. AIs will become increasingly powerful, providing developers access to better data, more efficient coding techniques, and sometimes, even a complete shift in job focus.
AI is being incorporated into the development process like any other tool or skill set — allowing us to create better products faster at a minimal cost. With these new resources, developers can take their programming capabilities to unprecedented levels.