Alphabet chief executive Sundar Pichai has warned that if the global AI boom gives way to a sharp correction, tech workers will feel the shock first, regardless of where they work or how big their company is.
Speaking to the BBC, Pichai said the enormous flow of money, research and hype into artificial intelligence has created one of the most accelerated innovation cycles the industry has ever seen. But he cautioned that such rapid expansion often carries the risk of overheating. If investor sentiment cools, he said, no organisation will be insulated from decisions that ripple down to employees, including hiring pauses, restructuring and shifting project priorities.
Pichai compared the moment to the dot-com era, where enthusiasm ran far ahead of revenue, eventually triggering layoffs across the tech landscape. He noted that AI may follow a similar pattern even if the long-term potential remains unquestioned.
He also highlighted a quieter but growing operational challenge: the massive energy consumption of advanced AI systems. The strain on global power infrastructure could alter how companies plan data centres, cloud workloads and engineering teams. For employees, this could mean new skills in demand, changes in team structures and reassessment of long-term roles tied to AI infrastructure.
Industry analysts have been increasingly vocal about inflated valuations and the widening gap between AI hype cycles and real-world adoption. Pichai’s comments, coming from one of the sector’s most influential leaders, add weight to concerns about stability, especially for frontline workers and mid-level tech talent.
Despite the warning, he emphasised that AI will continue to evolve and create new opportunities. His message, however, is clear: the next phase of AI growth will test whether companies can protect their people when the market inevitably cools. |
