Intuit AI Investments: The Company Decided to cut about 1,800 Jobs as to Promote AI Tools

It will let go of about 1,800 employees  or 10% of its workforce, as it looks to focus on its AI-powered tax preparation software and other financial products,TurboTax-parent Intuit said on Wednesday .

Company has invested high amout in providing generative AI-powered accounting and tax preparation tools for small and medium businesses in the past few years, expects to close two of its sites in Edmonton, Canada, and Boise, Idaho.

The company, whose shares fell 3.6%, did not provide a timeline for the fresh hiring.

Evercore ISI analyst Kirk Materne said “We believe making these changes from a position of strength is the right move and we view the incremental hiring plans post reduction in workforce as a sign that Intuit remains bullish on its growth prospects, especially as it relates to small businesses and Credit Karma” .

Intuit, said it will increase investments in generative AI and plans to expand into new markets including Canada, the United Kingdom and Australia.

The note added that 300 roles were being eliminated to streamline work, while consolidating 80 technology roles to sites such as Atlanta, Bengaluru, Tel Aviv and others as part of the layoff plan.

Intuit reported a rise in third-quarter revenue and increased it annual forecasts expecting a boost in demand for its AI-integrated products, in May 2024.

Impact  on Intuit’s products

The impact on Intuit’s products is likely to be twofold. First, the company’s focus on AI investments could lead to enhancements in existing products such as TurboTax and QuickBooks. We might see improved automation, accuracy, and user experience in these financial software solutions. Second, the layoffs and restructuring may temporarily disrupt operations, but the subsequent rehiring of new employees—especially in engineering and product roles—suggests a commitment to innovation and growth. Overall, Intuit aims to leverage AI to provide more efficient and intelligent financial tools for its users.

Intuit Plan to Expand its Market Presence

Intuit is strategically expanding its market presence by focusing on key growth areas.

1. AI Investments: Intuit recognizes the significance of AI and aims to leverage it for innovation. They have built one of the largest AI-driven expert platforms, GenAI, which enhances customer experiences and drives efficiency within the company.
2. Layoffs and Rehiring: While approximately 1,800 employees will leave Intuit, the company will hire new talent.
3. Strategic Focus: Intuit’s strategy includes money movement, mid-market expansion for small businesses, and international growth. By staying agile and investing strategically, they aim to strengthen their leadership position and power prosperity for customers worldwide.

Intuit’s GenAI platform

Intuit’s Generative AI Operating System (GenOS) is a proprietary platform that empowers their technologists to design, build, and deploy breakthrough generative AI (GenAI) experiences. Here are the key points about GenOS:

1. Custom-Trained Financial LLMs: GenOS includes custom-trained financial Large Language Models (LLMs) specialized in solving tax, accounting, marketing, cash flow, and personal finance challenges. These LLMs draw insights from vast amounts of rich financial data, enabling personalized experiences for Intuit’s customers.
2. Rapid Innovation at Scale: By leveraging GenOS, Intuit aims to fuel rapid innovation across its products and services. They’re using GenAI to address critical financial problems and drive durable growth.
3. Intuit Assist: One of the GenAI-powered experiences is “Intuit Assist.” It provides personalized, intelligent recommendations to consumer and small business customers, helping them make smart financial decisions with less effort and more confidence.
4. Data-Driven Approach: Intuit’s robust data capabilities—400,000 customer and financial attributes per small business and 55,000 tax and financial attributes per consumer—combined with GenOS, enable personalized interactions for over 100 million customers.

Read also: 1)Tesla Shares Growth Better-than-Expected Q2 Deliveries Report & How Tesla Compare With Others

2)Games Done Quick (GDQ):How to Watch SGDQ and Other Games Included in Summer Games Done Quick Bundle 2024

and for  more news click here.