Meta’s plans to replace workers with AI fell flat, report says

Meta, a leading advocate of artificial intelligence (AI), had ambitious plans to replace up to 60% of its workforce with AI as part of its "Project OT" initiative to become more "AI native." However, internal data revealed the plan was not working as hoped, according to a Reuters investigation published on Wednesday. Meta's code changes in internal software platforms surged 220% year-over-year, but only 36% of those changes resulted in new or upgraded features for Meta users.

Executives noted "reliability warning signs" caused by the AI coding surge, with large-scale, disruptive actions performed by AI agents leading to service disruptions and potential data leaks, causing a 40% increase in technical and security incidents. To address these issues, Meta installed tracking software on US employees' devices to monitor their keystrokes and mouse clicks, but the move sparked employee rebellion.

In an effort to appease workers, Meta promised to increase travel and social event spending and improve snack quality in office microkitchens. Despite these gestures, morale remained low, and Meta's top executives, including CEO Mark Zuckerberg, reported that they continued to discuss potential layoffs with employees. Experts warned that Meta's experience demonstrates the risks of rushing into AI implementation without proper validation of its capabilities and potential impact on productivity.

Consultants stressed the importance of focusing on measurable business outcomes when evaluating AI investments, rather than simply counting lines of code or other activity metrics.