KING OF PRUSSIA, PA — A King of Prussia tax technology software company has announced 170 layoffs due to artificial intelligence, according to a filling with the Securities and Exchange Commission.
The layoffs at the company, called Vertex, will eliminate about 9 percent of the company's global workforce. It's sparked alarm from Montgomery County officials who note the potentially devastating consequences AI could have on the economy.
"It’s happening here folks," Commissioner Neil Makhija said in sharing the Vertex news. "We need real policy to deal with economic displacement due to AI."
RELATED: Montco Data Center Proposed Again At Same Site, 6 Months After Massive Backlash
In the SEC filing on April 27, Vertex cited some internal maneuvering called a "Value Creation Plan," which indicated that the business "intended to become a more AI-enabled company, focus investments on key growth opportunities and drive operational efficiency to better align the Company’s workforce and resources with its long-term strategic priorities."
While major tech companies and elected officials like Gov. Josh Shapiro sell the adoption of artificial intelligence systems as a boon, tens of thousands of jobs across sectors have already been lost around the nation. The Federal Reserve Bank of Philadelphia estimates that eight percent of companies in the region have already made cuts caused by AI.
Meanwhile, up to 95 percent of organizations have seen no return on investments in generative AI, according to an MIT Media Lab study. AI has spurred $30 to 40 billion in losses to those companies, that report states.
The news comes as tech companies and developers attempt to continue to build data centers around Montgomery and Chester counties. The attempts, linked to efforts backed by both Amazon and Gov. Shapiro, have faced intense and bipartisan public backlash.
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