Google is set to lay off “a few hundred” employees from its global advertising team as part of its efforts to use artificial intelligence (AI) for greater efficiency and creativity. The job cuts specifically target the “large customer” sales team, with the aim of providing better support for small and medium-sized businesses that advertise on Google’s platform. The company had anticipated expanding its small business ad teams and increasing hiring this year.
It is worth noting that Google did not mention the disruptive impact of generative AI on various sectors, including advertising. However, last week, Google’s cloud computing unit unveiled new AI tools designed to assist retailers in personalizing online shopping experiences, modernizing operations, and implementing advanced in-store technology. A release from Google cited research indicating that 80% of US retailers consider adopting generative AI to be urgent.
The newly introduced AI tools enable retailers to easily integrate virtual agents into websites or mobile apps, providing personalized assistance and recommendations to shoppers. Additionally, Google AI technology can analyze product images and generate optimized descriptions to enhance product discovery in online searches.
It is important to note that Google had previously laid off around 12,000 employees, approximately 6% of its workforce, due to inflation and rising interest rates. Since then, the company has made substantial investments in generative AI.
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