{"id":261049,"date":"2025-09-28T10:28:12","date_gmt":"2025-09-28T10:28:12","guid":{"rendered":"https:\/\/www.europesays.com\/us\/261049\/"},"modified":"2025-09-28T10:28:12","modified_gmt":"2025-09-28T10:28:12","slug":"ai-is-making-some-boston-companies-hire-less","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/261049\/","title":{"rendered":"AI is making some Boston companies hire less"},"content":{"rendered":"

Under a new policy at DraftKings<\/a>, he added, \u201cyou can\u2019t hire anybody next year unless you\u2019ve already proven you can\u2019t do the same job with an AI agent.\u201d<\/p>\n

Robins and other CEOs in tech, finance, and other sectors have increasingly been asked about cost-cutting and AI, a hot topic ever since Marc Benioff, leader of California software giant Salesforce, said in September that he had eliminated 4,000 jobs<\/a> thanks to AI. <\/p>\n

Neither Robins nor other local executives have revealed specific plans to cut jobs. But AI apps that can answer customer questions, assemble documents, and handle other repetitive tasks already have the potential to replace workers. <\/p>\n

In the tech industry, AI coding assistants can reduce the need for programmers. A programmer can ask an AI assistant to write code that might have required several people in the past, though it must be checked by a veteran programmer. A recent study from Stanford University found signs of reduced hiring for entry-level software jobs<\/a> that could be related to AI.<\/p>\n

Some 78 percent of businesses reported using AI in at least one business function, according to a McKinsey survey<\/a> released in March. And a survey by Resume.com<\/a> of 1,000 employers found 37 percent said they planned to replace workers with AI next year.<\/p>\n

Tech companies have been leaders in adding AI capabilities in many areas, said Brady Lewis, senior director of AI innovation at consulting firm Marketri.<\/p>\n

\u201cIt\u2019s very, very significantly impacting the tech industry,\u201d Lewis said. But not all of the efforts will succeed, he added: \u201cSome of it\u2019s working, some of it\u2019s not.\u201d <\/p>\n

At American Well, based in Boston, chief financial officer Mark Hirschhorn seems to be an AI believer. <\/p>\n

The online health company this year has cut about 350 jobs, or 35 percent of its workforce, Hirschhorn said at a conference hosted by Morgan Stanley. \u201cWe\u2019re investing significantly in AI … to replace what we have or the cost structure,\u201d Hirschhorn said.<\/p>\n

\u201cWe have been an innovation shop for many years, but that innovation was at the cost of several hundred individuals,\u201d he said. \u201cAnd when we started this year, we had over 1,000 employees. We\u2019re currently at about 650. We continue to see areas of opportunity in limiting that cost structure.\u201d<\/p>\n

Hirschhorn declined to be interviewed. But in a statement to the Globe, he said American Well is training workers to use AI and trying to increase productivity: \u201cWe are looking at how AI can allow us to continue gaining efficiencies, do more with less, reduce costs, and ultimately create the best experience for all stakeholders.\u201d<\/p>\n

Meanwhile, at Boston software firm PTC\u2019s customer support unit, AI has been \u201cof value in terms of cost avoidance,\u201d chief executive Neil Barua said at a Citigroup conference. \u201cBut we\u2019ve got more work to do before we say that this is the lever that\u2019s going to create huge cost savings for the company.\u201d <\/p>\n

\"PTC,PTC, a design software firm that employs more than 7,000 people at offices around the world including in its Seaport headquarters, said it is using AI in many departments.David L. Ryan\/Globe Staff<\/p>\n

Asked for further comment, PTC, a design software firm that employs more than 7,000 people at offices around the world, including in its Seaport headquarters, said it is using AI in many departments.<\/p>\n

\u201cWe believe AI will fundamentally transform how work gets done, and we\u2019re optimistic about its long-term impact on employee productivity, cost savings, and decision-making,\u201d a spokesperson said. <\/p>\n

Tripadvisor in Needham, which employed about 1,000 people in the United States at the end of last year after multiple rounds of layoffs, is also looking at AI for cost savings, CEO Matthew Goldberg said at a Goldman Sachs event.<\/p>\n

\u201cThis is the first year where we\u2019ll go in to make AI efficiency and advantage as part of our annual planning,\u201d Goldberg said. \u201cIt\u2019s what everybody is doing.\u201d (The company did not respond to a request for comment.) <\/p>\n

And Cambridge internet company Akamai Technologies is running about 50 internal AI experiments to see if the technology can improve efficiency or generate other benefits, chief HR officer Anthony Williams said in an interview. The firm, which helps internet sites and streaming services distribute content, employed almost 5,000 people in the US and close to 6,000 abroad at the end of last year. <\/p>\n

Akamai\u2019s developers are using AI to speed up writing software for customers, for example, Williams said. The goal is to teach employees how best to use AI, rather than replacing workers, he said. <\/p>\n

\u201cWe believe AI can and will enhance our products and the capability of our people,\u201d he said. \u201cWe\u2019re fully embracing the movement.\u201d <\/p>\n

At DraftKings, cofounder and president Paul Liberman said jobs supplanted by AI would allow the company to expand positions in other areas.<\/p>\n

\u201cWe\u2019re not sitting there saying, \u2018Hey, we\u2019re going to go and get rid of jobs,\u2019\u201d Liberman said in an interview. \u201cQuite the opposite. We\u2019re saying, \u2018How do we leverage this technology to make our teams much more efficient?\u2019\u201d<\/p>\n

The company has used AI to cut costs by generating video footage needed to tailor ads for different cities, for example, Liberman said. <\/p>\n

\u201cSome things that used to take weeks or months now can be done in minutes or hours,\u201d he said.<\/p>\n

DraftKings is also looking for new employees with more familiarity with the newest AI apps, Liberman said. <\/p>\n

\u201cIt doesn\u2019t get rid of the need for new folks out of school,\u201d he said. \u201cIt really just changes the requirements by which we select our talent.\u201d <\/p>\n

Aaron Pressman can be reached at aaron.pressman@globe.com<\/a>. Follow him @ampressman<\/a>.<\/p>\n