AI implementation doesn’t have to translate into job cuts, expert says

AI tools are being used more and more often at American companies, but it doesn’t mean they’re going to replace humans, an expert says – they’re just very good at cleaning up inefficiencies.

In early May, the world listened when Micha Kaufman, CEO of the freelancer platform Fiverr, said in an internal memo that those who fail to adapt to a new AI-based reality are doomed and candidly warned: “AI is coming for your jobs. Heck, it’s coming for my job too.”

Concern deepened when a new report said that the hiring of new graduates at big tech companies such as Google, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla has declined by more than 50% since 2022.

The report, titled “State of Tech Talent: 2025,” plainly stated that the reason for the collapse is closely related to the rise of AI. The new tools typically take over more routine, entry-level tasks.

Dario Amodei, CEO of AI lab Anthropic, then said that the tech could eliminate half of all entry-level, white-collar jobs within the next five years.

It’s not that bad, however, Jon Hinkle, CEO of TRG Datacenters, now says. Sure, over 40% of US small businesses are already using AI to reduce operational costs, but the most effective applications aren’t about replacing jobs – they’re about replacing inefficiencies.

For instance, AI is very useful in flagging unused software and hidden fees, and cleaning them up quickly.

“Software bloat is one of the easiest areas to cut,” said Hinkle.

“We’ve seen startups reduce SaaS expenses by up to 15% just by auditing what they actually use.”

AI-powered expense analysis tools now track license usage and alert teams to inactive or overlapping tools. In one case, a three-person company eliminated $400 per month in waste, saving nearly $5,000 annually with a one-time setup.

AI is very useful in flagging unused software and hidden fees, and cleaning them up quickly.

Besides, AI tools can help with contract and content drafting, allowing young businesses to skip hiring freelance help in the early stages.

“Early-stage founders don’t need to outsource every proposal or NDA,” explained Hinkle.

“AI-generated first drafts are often more than enough to move forward.”

Startups are using AI to create pitch decks, contracts, onboarding guides, and marketing copy. These use cases commonly save $800-$2,000 per month by reducing dependency on legal freelancers and marketing contractors.

AI can also find better deals before companies even begin negotiating. One of Hinkle’s clients saved over $9,000 a year by switching providers after an AI tool flagged better pricing.

AI sourcing agents can scan supplier databases and live pricing feeds to recommend alternatives across logistics, utilities, cloud platforms, and elsewhere. This eliminates hours of manual research while significantly cutting recurring costs.

Finally, AI allows companies to generate a quote for complex technical systems in less than 10 minutes rather than hours.

Using AI to cross-check product specs, calculate compatibility, and build quotes has helped clients reduce quoting time by 60%, said Hinkle. For service-based businesses, this translates to saving $2,000-$3,000 in labor value each month.

“AI isn’t replacing staff – it’s helping founders avoid early mistakes, delay unnecessary hires, and stay lean during growth,” Hinkle believes.

“The companies seeing the most impact from AI are using it not for scale, but for precision – eliminating friction in daily operations that once cost them time and money.”