AI, Tax: White-Collar Squeeze

Amazon CEO Andy Jassy has warned employees that the rise of AI will lead to job cuts within the company, as AI agents automate routine tasks. Amazon is already deploying over 1,000 generative AI applications, expecting efficiency gains to reduce the corporate workforce in the coming years. The company plans to reskill employees through initiatives like "Upskilling 2025", offering training in cloud computing, machine learning and cybersecurity.

Meanwhile, changes to Australian tax laws will disproportionately affect high-income earners. The government's tax plan, while providing tax cuts for all taxpayers, reduces the tax cuts for higher earners. Someone with a taxable income higher than 95% of all Australians will likely pay about $45,000 more in tax than if the original plan had remained in place. Men, who are overrepresented among high-income earners, will receive a larger share of the tax cut benefits than women.

These dual pressures from technological disruption and tax reform could create a challenging environment for white-collar professionals in the near future. The tech sector could lose as many as 235,000 positions this year as AI replaces human roles.