Verizon’s CEO Takes a Bold Stance on AI’s Impact on Jobs

Verizon’s new CEO, Dan Schulman, has drawn attention for his upfront comments about the potential effects of artificial intelligence on jobs in America. This straightforward approach sets him apart from many others in the corporate world.

Since taking the helm at Verizon in October, Schulman has made several striking predictions regarding the influence of AI on employment. He has suggested that unemployment could soar to anywhere between 20% and 30% in just the next few years. He also cautioned that advancements in robotics might jeopardize even those manual jobs that seem secure right now. Schulman’s response to these changes leans towards advocating for enhanced education and reskilling efforts for workers as technology continues to evolve.

Schulman emphasizes the need for other executives to be open about the disruptive nature of AI. He believes that honesty is crucial to mitigating any public backlash against technological changes.

“These are challenging times, and we all understand that,” Schulman mentioned in a recent interview. “So I think the key is to be as authentic as possible, to be real, to tell the truth.” He pointed out that this philosophy led Verizon to establish a $20 million fund for outplacement and retraining in light of the layoffs affecting 13,000 employees last year.

This transparent approach sharply contrasts with other tech leaders. For instance, Nvidia’s CEO, Jensen Huang, downplayed fears about job losses, arguing that new technologies have historically led to greater productivity. Similarly, Amazon’s CEO, Andy Jassy, acknowledged that some jobs would disappear but reassured that new positions would emerge to take their place.

There’s a notable public concern surrounding AI’s impact on employment. A recent Quinnipiac University survey indicated that 55% of 1,400 American adults surveyed feel AI could do more harm than good, an increase from 44% the previous year.

Schulman’s candidness coincides with significant structural changes at Verizon. The 13,000 job cuts, announced shortly after he stepped into his role, were part of a strategy to save $9 billion—marking the company’s largest layoff ever. Verizon stated these reductions were unrelated to AI and aimed instead at enhancing efficiency and streamlining operations.

Schulman envisions AI as more than just a cost-saving tool. He believes it can fundamentally enhance Verizon’s operations, from customer service improvements to more customized consumer experiences. He has encouraged employees to embrace these technologies and has used AI tools himself to analyze employee feedback on reducing bureaucracy.

In a somewhat unorthodox approach, Schulman has urged employees to explore AI in personal ways. He suggested topics for casual conversation with family, such as discussing AI at dinner or using it to craft poetry for loved ones. He even recommended asking AI to draft obituaries, helping people to grasp how the technology operates.

“Whether we like it or not, we live in the age of AI. Personally, I find it fascinating,” Schulman reflected in his interview. “It’s similar to how many of us would have loved to experience the Renaissance or the discovery of fire. We are at a pivotal point in time, and perhaps we don’t fully realize how momentous it could be.”

Schulman goes further to speculate that AI might reach human-like intelligence, referred to as artificial general intelligence (AGI), much sooner than expected—possibly by the end of next year. He anticipates that quantum computing and humanoid robots will soon follow, leading to even more significant changes.

“This is the world we are currently living in,” Schulman stated. “Changes are happening at a rapid pace.”