Estonian IT Association Head: AI Will Not Fully Replace Human Jobs
Ats Albre, president of Estonia's Association of Information Technology and Telecommunications (ITL), says layoffs in the tech sector are not caused by artificial intelligence alone and that people still make the decisions. He expects laid-off specialists to find new jobs.
A wave of layoffs has hit Estonia's technology sector as artificial intelligence (AI) takes over a growing share of work. Ats Albre, president of the Association of Information Technology and Telecommunications (ITL) and head of the software company Nortal, commented on the situation. In his view, AI brings both risks and opportunities, but people still decide where the technology is directed.
Layoffs and their causes
Albre says the layoffs at Swedbank and Pipedrive happened within a very short period, so the trend looks stronger than it is. He notes that headcount at Telia and Swedbank has declined slightly but steadily over the past nine years, and he attributes part of that to companies becoming more efficient. According to him, fewer people are receiving redundancy compensation than a year ago.
Large foreign companies, including Microsoft, Amazon and Meta, are also cutting staff. Albre believes AI is only one reason; the companies also need far more capital now to invest in new data centres and AI development.
Nortal's experience
Nortal has invested significant sums to adapt to the changes. A large part of its business is software development, where some tasks can now be done up to ten times faster. However, not everything in the chain speeds up, and new bottlenecks appear in places.
Labour market and young people
Albre is optimistic: he expects the market to absorb laid-off specialists within the next six months, as demand for experienced engineers and technical experts remains high. He says young people choosing IT studies should not fear AI, noting that many graduates have improved their skills with AI tools and use them more naturally than people who have worked in the sector for decades.
Albre does not believe AI will eliminate entire professions. He says it replaces individual functions, while people must ensure the quality and accuracy of the result.
In his view, if AI is treated as an ordinary technology, its possibilities will reach all sectors, including those that previously lacked the resources to build software.
