Recent data shows AI job losses are rising, but the numbers don't tell the full story (2024)

Elon Musk, chief executive officer of Tesla Inc., during a fireside discussion on artificial intelligence risks with Rishi Sunak, UK prime minister, not pictured, in London, UK, on Thursday, Nov. 2, 2023.

Tolga Akmen | Bloomberg | Getty Images

Elon Musk insists artificial intelligence will get humans to a point where "no job is needed."

Are there signs this prediction is already becoming true? Headline numbers can make that seem so.

According to a recent report of 750 business leaders using AI from ResumeBuilder, 37% say the technology replaced workers in 2023. Meanwhile, 44% report that there will be layoffs in 2024 resulting from AI efficiency.

But even amid reports of AI-inspired layoffs, many experts disagree with Musk's view.

Julia Toothacre, resume and career strategist at ResumeBuilder, recognizes the numbers from its research may not accurately reflect the broad business landscape. "There are still so many traditional organizations and small businesses that do not embrace technology the way that some of the larger companies do," Toothacre said.

Layoffs are a reality, but AI technology is also enabling business leaders to restructure and redefine the jobs we do.

Alex Hood, chief product officer at project management and collaboration software company Asana, estimates that half the time we spend at work is on what he calls "work about work." Here, he's referring to the status updates, cross-departmental communication and all the other parts of work that aren't at the core of why we're there.

"If that can be reduced because of AI, that can be a great unlock," said Hood.

He says that without the nuance behind the numbers, the statistics marking and predicting AI-induced layoffs reflect fear more than reality.

With AI tackling task-based work, humans have the opportunity to move up the value chain, says Marc Cenedella, founder of Leet Resumes and Ladders. "For the entire economy," Cenedella said workers will be able to focus on "integrating or structuring or defining what the task-based work is." He compares this shift to mid-century office culture, when there were entire floors of typists — something that the efficiency of word processors eliminated.

White-collar work and 'human-centered' AI

According to Asana's State of AI at Work 2023 report, employees say that 29% of their work tasks are replaceable by AI. However, Asana is a proponent of what it calls "human-centered AI," which seeks to enhance human abilities and collaboration, not replace people outright. The more people understand human-centered AI, the more they believe it will have a positive impact on their work, the report states.

White-collar and clerical workers represent somewhere between 19.6%–30.4% of all employed people globally, according to the United Nations. Analytical and communication tools have redirected knowledge work over the years, and "generative AI should be considered another development in this long continuum of change."

But as of 2022, 34% of the global population still did not have access to the internet, so any conversation around AI's impact on layoffs and potential restructuring of the work needs to also include discussion of a wider mote between the technological haves and have-nots.

A worker's personal responsibility and AI tinkering

For professionals seeking to avoid redundancy in an AI-fueled work environment, there are steps to take.

Cenedella says that being a modern white-collar professional bears a level of personal responsibility. "Part of your job is to keep developing new skills," he said. "If you learned some software five years ago, that's not enough. You've got to learn new software today."

While positions like research and data analysis are in line for AI automation, for example, companies will still need someone to prompt the AI, make sense of the results and take action.

"My advice for anyone is to understand how AI could impact your position in your industry right now," Toothacre said. "At least you have an idea of what to potentially expect versus having no idea what's going on."

But Cenedella also recognizes that there's an expectation for business leaders to help employees continue developing their skills during their time at the company. "Just out of their own self-interest, the companies that do fund the development of their employees are going to be better positioned to be a little bit more ahead of the companies that don't," he said.

Even Hood, who's on the front lines of creating collaboration and project management solutions using AI, still experiments with his own products. In preparation for an upcoming performance review for a member of his team, Hood experimented by asking AI to summarize how he was collaborating with the team member.

The AI produced a list of all of their shared interests, all of the assignments and feedback between them, and a characterization of their relationship based on messages they've sent to each other. In this, Hood exemplifies what AI tinkering can look like.

"You learn it by asking it questions and seeing what it's capable of, and in some ways being disappointed, and in some ways being wowed, and then leaning into that," Hood said. "The best thing that employers can do is give folks the ability to understand what the art of the possible is through individual experimentation using AI today."

While layoffs are happening as a result of the current generation of AI, there's no historical evidence that technological advancements such as this will result in mass unemployment. The workforce has a history of malleability, and increased technological capacity can result in "higher value" work, as Cenedella says — and more productivity that future generations of AI will likely learn to handle.

Recent data shows AI job losses are rising, but the numbers don't tell the full story (2024)

FAQs

Are people losing jobs because of AI? ›

So yes, AI is leading to job losses. But not for the reasons we always worried about. This dynamic is being lost in a lot of the coverage of AI-related job losses, in part because we've been so primed by dire predictions over the past decade of a coming wave of white-collar job losses due to automation.

Is AI the reason for layoffs? ›

As per the report, AI and cost-cutting are the biggest reasons why tech layoffs surged by 136 per cent in 2024.

What percentage of jobs will be replaced by AI? ›

In advanced economies, about 60 percent of jobs may be impacted by AI. Roughly half the exposed jobs may benefit from AI integration, enhancing productivity.

Is AI going to cause mass unemployment? ›

AI will fundamentally transform the job market but the risk of mass unemployment is low. The rise of AI has sparked intense debate about the impact it could have on the labour market and future employment.

Which jobs are most at risk from AI? ›

The Most Vulnerable and Impacted Professions

Roles focused on data analysis, bookkeeping, basic financial reporting and repetitive administrative tasks are highly susceptible to automation. Jobs involving rote processes, scheduling and basic customer service are increasingly handled by AI.

What jobs are most under threat from AI? ›

Initial findings identified professional sectors like finance, law, and business management as more vulnerable to AI. The finance and insurance industries, in particular, showed high exposure levels. The study suggests a correlation between higher educational requirements for a job and greater AI exposure.

What jobs will not be eliminated by AI? ›

Which Jobs Are Safest from AI and Automation?
  • Health Care: Nurses, doctors, therapists, and counselors.
  • Education: Teachers, instructors, and school administrators.
  • Creative: Musicians, artists, writers, and journalists.
  • Personal Services: Hairdressers, cosmetologists, personal trainers, and coaches.

Is AI overhyped 2024? ›

So, as 2024 advances will the world slowly lose interest as the technology doesn't deliver results? In fact some top analysts are already calling the technology 'overhyped', even predicting it will get a 'cold shower' in 2024 because of unrealistic expectations, high costs and regulatory challenges.

Why are all companies doing layoffs? ›

In Cappelli's view, the current wave of layoffs is not because of the economy, but rather because companies are feeling pressure from investors to cut costs. The cuts make investors feel like the company is being proactive, but that's all the layoffs accomplish, Cappelli said, adding, “These layoffs won't do any good.”

What jobs will AI replace first? ›

AI Is Replacing Jobs Done By Human Workers
  • 1- Data Entry Clerk. With AI's ability to process and analyze vast amounts of data, the need for manual data entry is diminishing. ...
  • 2- Telemarketer. ...
  • 3- Factory Worker. ...
  • 4- Cashier. ...
  • 5- Driver. ...
  • 6- Travel Agent. ...
  • 7- Bank Teller.

What jobs will survive AI? ›

However, he does argue that in the near future there will only be three jobs that will be "immune" to AI, stating that the only ones that will 'resist' this new wave of technology will be energy-related jobs, biology-related positions and all those professionals who specialise in the design and operation of the AI ...

What jobs will be gone by 2030? ›

6 Jobs That May Disappear by 2030
  • Taxi Drivers. Jobs such as taxi drivers rely on the ability to drive and pay attention to their surroundings. ...
  • Cashiers. ...
  • Truck Drivers. ...
  • Teachers. ...
  • Travel Agents. ...
  • Data Entry Clerks.

Will AI cause massive layoffs? ›

By one tracker, US firms have announced 4,600 job cuts since May related to artificial intelligence.

What 10 jobs are least likely to be automated? ›

Jobs Least Likely to Be Replaced by Robots
  • Emergency management directors.
  • Mental health and substance abuse social workers.
  • Audiologists.
  • Occupational therapists.
  • Orthotists and prosthetists.
  • Healthcare social workers.
  • Oral and maxillofacial surgeons.
  • First-line supervisors of fire fighting and prevention workers.

Will AI take over the economy? ›

Since the 2000s, automation systems have already eliminated 1.7 million jobs. This number is only going to increase as AI plays a bigger role in everyone's lives. Some have predicted that AI is going to take away 85 million jobs by 2025 (Narayan, 2023).

What jobs will be lost due to AI? ›

“Examples include data entry, basic customer service roles, and bookkeeping.” Even assembly line roles are at risk because robots tend to work faster than humans and don't need bathroom breaks. Zafar also points out that jobs with “thinking” tasks are more vulnerable to replacement.

How many people laid off due to AI? ›

Since last May, there have been more than 4,600 job cuts in order to free up resources to hire people with AI experience or because the technology replaced tasks, according to outplacement firm Challenger, Gray & Christmas.

Do 14% of workers claim to have already lost a job to robots? ›

But this is where the disconnect lies. According to a 2022 study published in Socious: Sociological Research for a Dynamic World, only 14% of workers say they've lost their job to a robot. Also, those who hadn't experienced job replacement still estimated that 29% of jobs have been supplanted by robots.

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