Microsoft and Salesforce use AI to cut costs and reshape workforce

Microsoft is reporting substantial productivity improvements across its operations, thanks to the growing integration of AI tools in daily workflows.

Judson Althoff, the company’s chief commercial officer, stated during a recent presentation that AI contributed to savings of over $500 million in Microsoft’s call centres last year alone.

The technology has reportedly improved employee and customer satisfaction while supporting operations in sales, customer service, and software engineering. Microsoft is also now using AI to handle interactions with smaller clients, streamlining engagement without significantly expanding headcount.

The developments follow Microsoft’s decision to lay off over 9,000 employees last week, marking the third round of cuts in 2024 and bringing the total to around 15,000.

Although it remains unclear whether automation directly replaced job losses, CEO Satya Nadella has previously stated that AI now generates 20 to 30 percent of the code in Microsoft repositories.

Similar shifts occur at Salesforce, where CEO Marc Benioff has openly acknowledged AI’s growing role in company operations and resource planning.

During a recent analyst call, Robin Washington, Salesforce’s CFO and COO confirmed that hiring has slowed, and 500 customer service roles have been reassigned internally.

The adjustment is expected to result in cost savings of $50 million, as the company focuses on optimising operations through digital transformation. Benioff also disclosed that AI performs between 30 and 50 percent of work previously handled by staff, contributing to workforce realignment.

Companies across the tech sector are rapidly adopting AI to improve efficiency, even as the broader implications for employment and labour markets continue to emerge.

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