Foxconn’s CEO on AI’s Impact on Jobs

Young Liu, the CEO of Foxconn, forecasts a grim future for low-end manufacturing jobs due to the rise of artificial intelligence (AI). Foxconn, a major player in the tech industry, is responsible for producing around 70% of iPhones, making it the largest contract manufacturer globally.

During his keynote speech at the Computex Conference, Liu expressed concerns about the effects of combining robotics with generative AI. He believes this integration could significantly disrupt the job market, particularly in industries relying on routine tasks.

“AI and robotics could take over roles traditionally filled by humans. This presents an opportunity for our economy to evolve, but it also brings challenges—especially for low-GDP work,” Liu noted. He urged leaders in developed nations to carefully assess the situation.

In line with these predictions, Foxconn is working on a project called “Foxbrain.” This initiative aims to develop a specialized model tailored for manufacturing needs, creating what Liu describes as an “agent workflow.” It seems that Foxconn is really gearing up for a future heavily influenced by AI.

Concerns About Job Security

The increasing adoption of AI technology has raised alarms among employees worried about their job security. Many businesses are utilizing AI to streamline operations and increase profits, raising fears of widespread job displacement.

Recently, Microsoft announced layoffs of approximately 6,000 employees, accounting for 3% of its global workforce, as part of its shift to a more AI-centric model. Similarly, CrowdStrike indicated last year it would reduce its workforce by 5%, replacing those jobs with AI solutions.

Language learning platform Duolingo has also stated that they will gradually phase out contractors for tasks now manageable by AI, a move they’ve justified by citing past successes in adapting to technology trends.