In a significant development, Google is considering a major reorganization within its 30,000-person ad sales unit, signaling a strategic shift towards greater integration of AI in its operations. This move comes on the heels of the company’s recent decision to lay off over 12,000 employees earlier in 2023. With the increasing incorporation of AI in its business model, Google aims to enhance efficiency in ad purchases across its platforms, a change that has raised concerns about potential job cuts within the organization.
The tech giant has been progressively introducing AI-powered tools in its operations. These tools have automated the creation of new ads and played a pivotal role in contributing to the company’s annual revenue, which is estimated to be in the tens of billions of dollars. The high efficiency and minimal employee involvement required by these AI tools have led to increased profit margins for Google.
Impact of AI on job roles and Ad creation
A report from The Information suggests that the advancements in AI within Google may lead to job displacement. The company is contemplating staff consolidation and potential layoffs, particularly focusing on reassigning employees in the customer sales unit responsible for managing relationships with major advertisers. This was reportedly disclosed during a department-wide Google Ads meeting, where the decision to automate certain roles was discussed.
In May, Google introduced what it described as a “new era of AI-powered ads.” This includes a natural-language conversational experience within Google Ads, aimed at simplifying ad campaign creation. The AI scans websites and automatically generates keywords, headlines, descriptions, images, and other assets. The AI-powered ad tool Performance Max (PMax) has been enhanced with generative AI capabilities, allowing for the efficient creation and scaling of custom assets. As these AI tools gain popularity among advertisers, the need for human intervention in ad design and sales has noticeably reduced, contributing to the cost-effectiveness and profitability of Google’s ad revenue.
Anticipated changes and employee anticipation
The anticipated reorganization is expected to impact a substantial portion of the ad division’s workforce. As of a year ago, approximately 13,500 individuals were dedicated to sales work within this division. While the exact extent of the impact remains uncertain, potential reassignments of roles within Google are on the horizon.
Official announcements regarding the scale and specifics of the restructuring are expected in the coming month. This leaves employees in a state of anticipation, facing potential changes in roles and responsibilities during this transformative phase for the company.
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