Cathie Wood of $ARKK has said that AI has reduced the need for hiring

Advances in artificial intelligence mean Ark Investment Management is hiring more cautiously, founder Cathie Wood said.

Speaking to reporters in Helsinki on Wednesday, Wood explained, “We are really thinking carefully about hiring because we’re adopting the Elon Musk philosophy — you really have to make a good case to bring another human being into our organisation.”

Ark is among a growing number of firms adjusting recruitment plans in response to AI’s productivity gains. Norway’s $2 trillion sovereign wealth fund has largely frozen hiring as it increases AI adoption, while Salesforce has said internal use of the tools has reduced its need to expand headcount. Klarna cut more than 20% of staff in 2023, citing AI, though it later reversed course by rehiring customer service agents after quality slipped.

Wood noted Ark still plans to add research associates: “We will bring in research associates — we want that new blood. We need that new blood because they have one foot in the new world, and they’ve come out of schools where they are teaching the latest in research about all of these new technologies.”