In 2024, Microsoft said it saved more than $500 million by widely integrating artificial intelligence (AI) across multiple business areas. The largest share of those savings came from the company’s call centers, where AI-driven tools improved operational efficiency and the quality of customer interactions. Judson Althoff, Microsoft’s chief commercial officer, stated that AI has measurably boosted productivity in groups such as software engineering, customer service and sales. He pointed out that the effect was especially pronounced in engagements with smaller customers, who historically received less individualized attention. Sales teams using AI tools have been able to close deals more effectively, producing an estimated 9% increase in revenue tied to better sales performance. Together, these developments indicate that AI is helping optimize internal workflows and strengthen customer engagement across the firm. At the same time, Microsoft has faced criticism after conducting rounds of layoffs that affected thousands of employees globally, including software engineers at its Redmond headquarters. The cuts drew additional scrutiny after an Xbox executive made a controversial remark suggesting AI could help laid-off workers cope with the stress of job loss, which sparked debate about the ethics and human consequences of corporate AI deployment. Microsoft’s situation reflects a wider pattern in the tech sector, where companies are increasingly using AI to automate large parts of their workforce, particularly in roles like customer service and software development.

For instance, Salesforce has acknowledged that AI now performs a substantial portion of its operations, notably in customer support and engineering tasks. Experts warn that the surge of generative AI could significantly disrupt employment, especially for entry-level positions that often involve routine work and serve as stepping stones into technical careers. A smaller pool of entry-level roles could change how people enter the field and alter hiring and promotion practices across industries. Senior tech leaders have also commented on AI’s workforce impact. Meta CEO Mark Zuckerberg and Salesforce CEO Marc Benioff have both suggested that AI will soon take on responsibilities currently handled by mid-level engineers, signaling a shift in workforce dynamics in which AI augments—or replaces—human labor at multiple organizational levels. Overall, Microsoft’s experience highlights the difficult trade-offs organizations face as they adopt AI to achieve cost savings and productivity gains while grappling with social and ethical implications. The company’s example contributes to an ongoing conversation about how AI will reshape employment and underscores the need for new approaches to work, retraining and workforce management in a rapidly changing digital era.