You might think the big story out of Match Group’s first-quarter earnings is Tinder’s turnaround. The dating app’s revenue is slightly up again after quarter-after-quarter of declines.
But we’d like to point to a comment the chief financial officer made about how the company is slowing its hiring right now because it needs more money to pay for AI tools for its employees.
Ah, yes, the good ol’ “let’s blame AI” strategy!
While speaking to analysts on the first-quarter earnings call, Match Group CFO Steven Bailey talked about how the dating app giant was investing in AI technology for internal use at the company — as well as how Match was paying for it.
“We’re making a big push around AI enablement. We’re giving every employee in the company access to all the cutting-edge tools. We’re giving them the training they need to succeed. We’re setting expectations. We really want to become an AI-native company,” Bailey said.
“We think it’s a huge opportunity. But these tools cost a lot of money, as I’m sure you know, and so the way we’re helping to pay for that is by slowing our hiring plans for the rest of the year,” he added.
The company assured investors that the impact would be cost-neutral, as the slowed hiring and lower headcount would make up for the increased software expenses. Plus, Match Group is betting that the increased productivity from employees’ use of AI will ultimately increase revenue growth, the number-cruncher explained.
While on the surface, this looks like another example of AI taking people’s jobs — in this case, forcing a company to lower its number of open positions — there’s likely more nuance to this story.
Let’s keep in mind that Match Group’s flagship app, Tinder, has been struggling in recent years. This quarter may be the start of a turnaround, as monthly active users declined by 7% in March compared with the …