The emergence of AI has led to widespread and frequently unsettling forecasts regarding the future of employment, as certain technology executives caution that many types of jobs may vanish.Elon MuskFor example, it is believed that within just 10 years, work could become entirely optional due to the advancement of robotics.
But although some companies have already used AI as a reason for cutting staff, Costco's CEORon Vachrisis resisting that viewpoint. Technology, he stated, is not diminishing jobs—but instead enhancing them.
"We haven't moved people because the business is expanding more quickly," Vachris stated.The Chicago Economic Clubearlier this month. "Employees who previously handled those tasks have now moved into more strategic positions."
That doesn't imply that Costco is opposing technological advancements. The company, which has over 341,000 employees worldwide, has implemented AI to improve efficiency in various areas of its operations, including pharmacies, gas stations, accounting, and IT. However, Vachris mentioned that the technology is primarily meant to assist employees rather than replace them.
"I don't anticipate AI selecting products for Costco," he mentioned during the conversation, which was led by the President of United Airlines.Brett HartI'm not sure we'll ever remove that from the control of an experienced buyer. AI won't be conducting appraisals alongside our staff, but there's significant potential for creating AI systems, and it will help make us a stronger company.
In various respects, this strategy seems to be yielding financial benefits. Costco stock has increased by approximately 17% this year, resulting in the retailer's market value surpassing $440 billion.
Costco has risen to position 12 on the500—with income slightly above $250 billion in 2025, exceedingMicrosoft, Chevron, and General Motors. And as the company keeps focusing on its trademark$1.50 hot dogs and $5 rotisserie chickens—along with humans at the checkout counter—Costco's success is expected to keep going.
The biggest long-term challenge for Costco isn't artificial intelligence—it's about 'straying from our path'
Since its early origins in the 1970s, Costco has established acult-like followingAmong shoppers—with its paid members reaching 81 million by 2025. However, during a period of intense competition, safeguarding that culture—rather than simply keeping up with AI—is one of Costco's biggest challenges.
When questioned about the company's greatest danger, Vachris responded briefly: "Our losing our direction."
"We must remain as focused as we were when we had 200 warehouses," he said.told in a 2024 corporate profileWe must not develop arrogance. We must not grow complacent.
One area where Costco has maintained consistency is in itsdedication to diversity, equity, and inclusion. With increasing political pressure on DEI, manyorganizations quietly reduced or stopped their initiatives. Costco has mostly maintained its stance, with Vachris and the company's board contending that a varied workforce and supplier network enhances talent acquisition and innovation, according to reports fromThe Wall Street JournalShareholders strongly opposed a proposal from last year that urged Costco to examine risks associated with its diversity, equity, and inclusion initiatives, with over 98% of the votes cast opposing it.
The company's culture seems to align with its employees as well. Costco has consistently claimed some of the highest retention rates in the retail industry: Over 55% of U.S. Costco employees havebeen with the companyfor more than five years, while approximately 23,000 workers have remained for more than 25 years.
contacted Costco for additional information.
Like Costco, the executives of Delta andIBMare placing their trust in human employees—rather than technological substitution
As companies like Meta, Amazon, and Microsofthave eliminated thousands of positions in recent years, yet some business leaders, such as those at Costco, are challenging the notion that artificial intelligence should mainly be utilized to reduce employee numbers.
Delta Air Lines CEO Ed Bastianhe stated he wants the technology to enhance workers' roles—not replace them.
"I believe it's incorrect to label anything as artificial," Bastiantold last monthWant to frighten people? Inform them that artificial intelligence is coming for them.
Rather, the Atlanta-based aviation company is concentrating on employing AI to assist employees as roles change. Bastian mentioned that business leaders should reduce the tension surrounding concerns thatAI will instantly take over employees' roles.
At the conclusion of the day, we understand that these job skills will evolve, as they always have," he added. "However, one aspect of AI is that it's evolving faster than people expect. And there's a lot of excitement surrounding it.
IBM CEO Arvind Krishnahas also warned against using artificial intelligence as a justification for halting recruitment, especially for new graduates.
Individuals are discussing either cutbacks or halting new hires, but I would like to point out that we are doing the opposite,Krishna told CNN in OctoberI anticipate that we will likely hire more college graduates in the next 12 months than we have in recent years, so you'll notice that.
Nevertheless, the conflict between AI enthusiasm and job cuts continues to be hard to overlook—particularly as technology companies strive to invest in new innovations. Just a week following Krishna's remarks, IBM revealed intentions to lay off thousands of employees by the end of 2025 as it redirects its efforts towards further software and AI developments. A company representative statedAt the time when the round of layoffs would affect a single-digit portion of the company's overall staff, and when considered alongside new hires, would result in IBM's U.S. employee count remaining approximately the same.
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