Boston firms adopt AI reducing hiring needs across industries

Several major Boston-based companies are implementing artificial intelligence to reduce hiring needs and operational costs across industries, signaling a shift in workforce strategies.

Key Developments:

• DraftKings has instituted a new policy requiring proof that AI cannot perform a role before approving new hires (source: Boston Globe)
• American Well cut 35% of its workforce (350 jobs) while investing heavily in AI to restructure costs
• PTC reports AI is "of value in terms of cost avoidance" in customer support
• Tripadvisor is incorporating AI efficiency into annual planning after multiple layoffs

Industry Trends:

• 78% of businesses now use AI in at least one function (McKinsey survey)
• 37% of employers plan to replace workers with AI in 2026 (Resume.com survey)
• Stanford study shows reduced hiring for entry-level software jobs linked to AI adoption

Company Perspectives:

DraftKings cofounder Paul Liberman: "We're not sitting there saying we're going to get rid of jobs... [but] leverage this technology to make our teams more efficient."

American Well CFO Mark Hirschhorn: "We continue to see areas of opportunity in limiting that cost structure."

PTC's Seaport headquarters (Credit: David L. Ryan/Globe Staff)

While companies emphasize productivity gains rather than outright replacements, the trend clearly shows AI is reshaping Boston's employment landscape across tech, healthcare, and service industries.