Google's artificial intelligence (AI)-powered ads have grown self-sufficient and don't require as many employees to monitor ad performance, prompting Google to lay off employees who are no longer needed at the company, according to a report from The Information .
Launched in 2021, the Performance Maximizer for Google Ads is designed to simplify the process of targeting ads to users across Google's platforms. Also known as PMax, the tool uses machine learning models to drive conversions across channels like YouTube, Display, Search, Discover, Gmail, and Maps using Smart Bidding.
Google's latest restructuring shows how easily AI can replace employees
Based on advertiser goals, PMax creates AI-powered ads and content. The addition of these ads is what fueled the company's advertising success, forcing Google to lay off employees and downsize its workforce.
The AI ad tool has seen increased usage since its launch at Google I/O 2023, allowing advertisers to easily control their own assets instead of relying on ad sales staff. Sean Downey, Google’s president of the Americas and Global Partnerships , detailed the details to employees during an internal meeting, saying they would be laid off as part of Google’s restructuring efforts.
Google CEO Sundar Pichai reportedly said that laying off 12,000 employees was one of the most difficult decisions the company has ever made, but that doesn't seem to have stopped another round of layoffs. If the AI-powered ad layoffs go through, the impact on the 30,000-member ad sales team will be even more significant than the last time.
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