Max Votek: The Real Reasons Behind AI-Related Layoffs

Transparency in AI Usage: An Imperative According to Max Votek

Max Votek, co-founder and managing partner of Customertimes, emphasizes the need for companies to be more transparent regarding their use of artificial intelligence (AI) and how the savings generated by this technology are reinvested. According to him, many companies use AI to justify restructuring that was already planned. The savings generated by AI, while real, are often absorbed by costs related to tokens and the infrastructure necessary for their implementation. Votek highlights the importance of transparency to counter negative perceptions surrounding AI.

This article is based on a conversation with Max Votek, who leads Customertimes, a consulting firm specializing in assisting Fortune 500 companies with AI integration. The essay has been edited for length and clarity.

An Internal Perspective on AI-Related Layoffs

Companies seem to be rushing to attribute layoffs to artificial intelligence. However, as a consultant for Fortune 500 companies, Max Votek observes that the reality is often more complex. As co-founder of Customertimes, a consulting firm with 1,000 employees, he has spent nearly a decade in the pharmaceutical industry leading technology transformation projects. Each week, he engages with CFOs, CIOs, and CEOs, and what he hears in private often differs from public discourse.

Misunderstandings Surrounding AI-Related Layoffs

Max Votek insists on the necessity for companies to be honest about AI. This technology suffers from an image problem, and the lack of communication from companies only exacerbates the situation. When layoffs are announced without an explanation regarding the use of the savings generated, the public tends to imagine the worst. In the absence of clear information, conspiracy theories can emerge.

Consumers demand transparency. They want to know how AI is being used, how customer data is protected, and whether the benefits are being redistributed to employees or customers. Votek suggests that companies publish information on how the savings generated by AI are utilized. If these benefits are reinvested in bonuses for employees, price reductions for customers, or improvements for the company, this should be communicated. A simple registry of gains could dispel many suspicions.

The Real Destination of Savings

A survey reveals that 86% of adults believe that savings generated through AI should translate into lower prices for consumers. Votek considers this expectation legitimate. Many imagine that companies lay off employees, retain the savings, and increase executive bonuses. However, the reality is more nuanced.

Behind the scenes, companies face significant bills from AI providers. CFOs and CIOs often report having underestimated the costs of tokens, and many organizations have quickly exhausted their AI budgets. Some executives even mention "token maxxing," referring to the rapid depletion of the AI budget without achieving the expected productivity gains.

Moreover, companies are investing heavily to protect their internal know-how. They fear that their processes and trade secrets may be exposed in public language models, prompting them to build additional AI infrastructure to secure this information. These investments are costly.

Efficiency: A Constant Quest for Companies

Long before the rise of generative AI, companies were using robotic process automation to eliminate repetitive tasks. The goal remains the same: identify inefficient processes, automate routine tasks, and free employees from repetitive work.

Max Votek rarely hears executives claim they are replacing employees with AI. Internal discussions are not framed in this way. He believes that many companies use AI to justify restructuring that was already planned. Often, AI masks an underlying inefficiency. A company identifies an outdated process, restructures it, and then justifies the decision by invoking AI.

Restructuring is not unusual. Companies regularly reorganize to improve efficiency. The problem lies in the lack of transparency towards employees and shareholders regarding the true motivations behind these decisions.

The reality is more complex than many headlines suggest. AI excels at managing repetitive tasks, but it cannot replace accountability. Automating a CEO presentation with an AI avatar is possible, but the responsibility of leading a company cannot be automated.

Many employees are adapting to these changes. At Customertimes, significant investments are being made in AI training, allowing testers and business consultants to acquire new skills in just a few weeks. Instead of losing value, they often become capable of contributing even more.