Microsoft says AI saved it $500 million - despite it also confirming massive job cuts

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Microsoft is using AI to save lots of money - but are human workers paying the price?

Microsoft
(Image credit: Future)
  • AI is enhancing productivity at Microsoft - and could be threatening jobs after all
  • The company says it saved $500 million by using AI in call centers
  • Microsoft has laid off thousands of workers in 2025 alone

Microsoft has declared that artificial intelligence is now saving the company money across sales, customer services and software engineering.

Reports have claimed that in a recent company meeting, Microsoft's Chief Commercial Officer Judson Althoff revealed the company has saved over $500 million in its call centers alone, thanks to the implementation of artificial intelligence, while simultaneously improving employee and customer satisfaction.

AI's direct effects on the workforce remain uncertain, but Microsoft has laid off thousands of workers recently since overhiring during the pandemic, and it seems AI-induced efficiency gains have only worsened the effects.

Microsoft is making huge savings thanks to AI

Artificial intelligence is now handling Microsoft interactions with smaller customers, generating tens of millions in revenue with reduced human input.

Apart from using AI in customer-facing roles, Microsoft has also rolled out generative AI coding tools across new product development and existing updates. Around one-third of Microsoft code is now AI-generated, putting the company on par with its fellow tech giant, Google.

With Microsoft due to release its latest quarterly report soon, we're yet to see how financial performance has been affected by its use of AI.

However, last quarter the company posted a 13% increase in revenue, with CEO Satya Nadella commenting, "From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers."

Microsoft has been in a battle for pole position as the world's most valuable company in recent months. Though often overtaken by Nvidia, it remains several billion dollars ahead of Apple.

More broadly, Microsoft isn't the only company making productivity gains. Salesforce, a company that has also been going in hard on generative AI and agentic AI, now reports that around 30% of its internal work is handled by artificial intelligence.

Via Bloomberg

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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