At companies like Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Shopify Inc. (NASDAQ:SHOP), engineers report that the introduction of AI tools has transformed how coding is done. However, it might not always be for the better.
What Happened: Amazon software developers told the New York Times they’ve been pushed to use AI tools to meet higher output goals, despite smaller team sizes and tighter deadlines
In response, Amazon stated that it routinely evaluates team staffing levels and may scale up as needed. “We’ll continue to adapt how we incorporate Gen AI into our processes,” Brad Glasser, an Amazon spokesman, told the publication.
Amazon CEO Andy Jassy has been vocal about the productivity gains AI offers, writing in a shareholder letter last month that generative AI is delivering”meaningful returns through productivity and cost avoidance. He underscored that coding is one area where AI is changing the norms.
Shopify Inc. (NYSE:SHOP) CEO Tobi Lütke echoed that sentiment in an April memo, telling employees that “AI usage is now a baseline expectation” and would even be factored into performance reviews, the report noted.
At Alphabet’s Google, a companywide hackathon will soon be held to encourage employees to develop AI tools to boost daily productivity, with winners receiving $10,000, the report added, citing an internal document.
Over 30% of Google’s code is now suggested by AI and accepted by developers, the report said, citing a company spokesperson.
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Microsoft’s AI coding assistant, Copilot, has been found to increase output by more than 25%, a study co-authored by Microsoft researchers reported in 2024.
Why It’s Important: While AI is streamlining tedious programming tasks and accelerating development, workers say the pace and pressure are beginning to mirror factory or warehouse environments.
“There is a sense that the employer can pile on more stuff,” Harvard labor economist Lawrence Katz told the outlet. He warned that the trend may especially hurt junior developers, who now spend less time thinking deeply about problems and more time accepting AI-generated code.
According to a 2024 PwC survey, 84% of CEOs who have implemented AI report a boost in employee productivity. Additionally, 70% believe AI will dramatically reshape their business operations within the next three years.
Benzinga Edge Stock Rankings assigns Amazon an impressive growth score of 97.09%, highlighting its strong market momentum. Click here to compare it with other leading stocks like Microsoft, Shopify and Alphabet.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
