Murmurs about a linkage between the rollout of new AI services and recent waves of layoffs within the tech industry have been ongoing for some time. Similarly, a recent cooling of the job market for coders has also been attributed to the rise of so-called “vibe coding,” in which less skilled technicians create websites and products with the help of an automated assistant.
Now, a new report from a firm that works with tech companies claims that a majority of its clients say they are considering big changes to accommodate greater integration of AI.
The report comes from Source, a consultant that provides services to media, tech, and telecom firms. The company found that some 55 percent of its clients expect to invest in organizational restructuring during the next 18 months. The report seems to attribute these changes to AI:
It is impossible to hide from the impact of AI. Few organisations—if any—do not have a roadmap for AI implementation, usually with the support of external help. TMT clients are no exception. Two of the top three issues discussed in high-tech organisations were focused on technology
Horrifyingly, the company notes that some of the biggest interest comes from media companies that seem to want to integrate AI slop into their video production pipelines:
In 2024, arguably the biggest advancements concerned video generation, catching the attention of media clients, in particular. This development will have a profound impact on the world of video production, and by direct extension, media clients. And while the potential impact of AI on the media industry is clear, the impact on the high-tech industry will be similarly game-changing.
If accurate, the study suggests that true “disruption” (the term tech bros have long overused) has come to Silicon Valley. At the same time, it also seems somewhat at odds with other recent studies, including one from MIT that suggested that most corporate AI pilot projects have ended in failure. Another recent study suggests that AI use at large companies (that is, companies with 250 employees or more) may be in decline.
What sort of picture are we to take from all of these disparate snapshots? Are companies needlessly reorganizing themselves around a technology they’re not even sure works yet? Are they then figuring out it’s not worth it and ditching the tools? It doesn’t seem out of the realm of possibility that all of these things could be true at the same time.
Tony Maroulis, principal consultant from Source Global Research, told The Register: “To a large extent, the crises and uncertainty faced by companies are factored into planning, and the resulting fiscal caution is gradually giving way to more ambitious investment plans.”
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