Advocates of AI have long predicted that the technology will lead to unparalleled productivity improvements, rewarding those who leverage it while sidelining those who do not.
Zeb Evans, CEO of the collaboration software company ClickUp, believes this transformation is close at hand. Last Thursday, Evans shared on X that the company, valued at $4 billion in 2021, had reduced its workforce by 22%. He described this move not as a cost-cutting measure, but as a bold adoption of AI to propel the company forward.
“Most savings from this change will flow directly back into the people who stay. We’ll be introducing million-dollar salary bands. If you create outsized impact using AI, you’ll be paid outside of traditional bands,” Evans wrote.
According to a Fortune article published recently, ClickUp has deployed about 3,000 internal AI agents to manage various complex tasks for its employees. Instead of doing the work themselves, staff members are now tasked with directing these agents and reviewing their output to ensure it aligns with the company’s standards.
Evans’s ambition, as per his X post, is to transform ClickUp into a “100x org” through AI.
ClickUp is not alone in anticipating significant productivity boosts from AI agents.
A recent Gartner survey indicates that around 80% of companies using autonomous technologies have cut jobs. However, the study noted that these layoffs have not necessarily resulted in substantial financial benefits.
Despite Gartner’s findings suggesting that some companies might use AI to justify downsizing, ClickUp insists it does not fall into this category.
Evans communicated to JS via email that the startup is indeed witnessing productivity improvements from AI agents. ClickUp is tracking these efficiencies internally and plans to incorporate them into an upcoming product for its clients.
“Instead of gamifying token cost, we gamify value created and time saved,” Evans wrote.
Recently, more companies have begun tracking employee token usage as a measure of AI tool adoption. However, critics argue that “tokenmaxxing,” as it is termed, is an ineffective metric because it merely increases AI costs.
“The people that automate their jobs with AI will always have a job,” Evans claimed in his post. Nevertheless, if AI continues to assume more responsibilities, ClickUp will require fewer employees, potentially eliminating those who do not effectively automate their roles.
This scenario has been speculated about for some time in tech circles.
An example of a startup maximizing AI automation is Polsia, a one-year-old company that manages all software operations for solopreneurs with just its founder and CEO, Ben Broca. This approach seems successful, as Polsia recently secured $30 million at a $250 million valuation.
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