UAE Recruiters React to Job Losses Linked to AI After Amazon Layoffs

As Amazon announced further corporate job cuts this week, industry experts in the UAE are forecasting a similar wave of job displacement driven by automation and artificial intelligence (AI). The trend, which originated in the United States with major technologies firms like Amazon and Meta, raises concerns about its impending effects on the Gulf region’s labor market.

The Impending Wave of Job Shifts

Zaid Al Hiali, co-founder of a consulting firm, emphasized that the job cuts seen in the U.S. are a precursor to a broader trend expected to impact the Gulf region. “This is definitely a wave that is coming our way 100 percent,” he stated. He explained that the acceleration of AI technologies is occurring across various sectors, including operations and software engineering, with automation tools capable of creating entire websites in mere seconds.

Al Hiali noted the urgent need for employees to improve their skills to remain relevant in an evolving job landscape. “If you have ten administrators in one company, maybe you will only need two or three,” he explained. He highlighted the experience of an AI-driven design review system that streamlined the workload of ten engineers into a matter of minutes by automating the review process against established standards.

AI’s Role in Various Industries

This digital transformation is not limited to technology companies; it is already influencing sectors such as oil and gas and banking. Al Hiali mentioned that AI is reshaping Emiratisation strategies within companies facing challenges in meeting national employment targets due to a lack of qualified Emiratis. He noted, “Many functions that were historically filled by new hires are now being replaced entirely by AI systems capable of handling tasks more efficiently.”

He predicted that the ramifications will intensify over the next couple of years. “Give it two years — you will see massive layoffs,” he cautioned, noting that many companies are implementing these changes discreetly to avoid negative publicity. Internal discussions surrounding AI initiatives, however, are already prevalent in various firms.

Ethical Approaches to Workforce Transition

Not all businesses are resorting to layoffs. Some employers are adopting more ethical practices by offering retraining instead of immediate job cuts. “One of our biggest clients is asking engineers to upscale themselves to AI,” Al Hiali explained. He underscored the financial advantages of AI, mentioning that the cost of employing a software engineer could amount to Dh250,000 a month, while an AI system could offer the same capabilities at significantly reduced expenses.

AI as an Enabler in the Workplace

Aws Ismail, Al Hiali’s business partner, aligns with the view that AI should be utilized as a tool to enhance human productivity rather than serve as a job replacement. “I believe AI should be an enabler, not a replacer,” Ismail stated, while acknowledging the ongoing trends of technology replacing teams in larger firms. He noted that when used strategically, AI can substantially improve overall efficiency.

Ismail provided an example from a logistics business where a sales team of 20 was cut to just two employees thanks to an AI system handling customer inquiries. Although efficiency reportedly surged, he warned individuals about the risks of over-relying on AI for their critical thinking. “If you’re just copy-pasting what it tells you, you’re easily replaceable,” Ismail cautioned.

AI Recruitment Tools Gaining Acceptance

Candidates are beginning to experience interviews conducted by AI, a shift that several individuals find surprisingly favorable. For instance, a graphic designer who recently interviewed with an AI system noted that the experience was surprisingly engaging. “It took me a minute to realize I was talking to a bot — and when I did, I actually felt more confident,” she shared. The AI interviewer prompted detailed discussions about her skills and provided clear timelines for follow-up communications.

Another candidate, who recently underwent an AI-centric interview process, echoed similar sentiments, describing the ease and neutrality of the interaction. “The AI system understood me objectively and didn’t show bias,” he remarked, highlighting that he could concentrate on articulating his responses without the additional pressures of a human interviewer’s body language or tone.

The Future of Employment in the UAE

While the UAE has yet to see widespread layoffs linked to AI, experts are aware that this is likely to change as technology adoption continues to expand. “We’re still adopting these technologies regionally,” Ismail noted, drawing a comparison to the larger layoffs currently affecting the U.S. due to faster implementation of AI solutions.

Both Al Hiali and Ismail agree on one critical point: it is essential for employees to adapt and learn about AI before they risk being rendered obsolete. “The smart employee will say, ‘I will be replaced at some point, so let me go upscale myself,’” Al Hiali advised. They emphasize that being proactive and improving one’s skill set will be paramount in navigating the future of work in the age of AI.

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