What You’ll Learn: AI job displacement is a concern among many modern employees. Learn more about automation’s impact and why people are uneasy. Plus, get tips on how to stay proactive and protect your future.
Job displacement refers to a situation in which people involuntarily lose their positions due to factors beyond their control. This can result from many different aspects, including the economic climate to company restructuring. AI job displacement, however, specifically concerns the rising use of artificial intelligence and involves unique challenges. It especially impacts specific areas such as data, customer service and administration, but its impacts are expanding.
In truth, job displacement due to automation has been a concern for decades. Yet more recently, workers have feared a future where AI will take over many of their jobs. Today, AI is approaching more rapidly than even the developers behind this technology anticipated.
This recent surge in technology has many workers feeling apprehensive. A recent survey, in fact, found that 89% of workers now have concerns about job security due to AI. Join us as we break down job trends, discuss the importance of diversifying skill sets and explore the future of AI and job security.
Understanding AI Job Displacement and Its Effects on Workers
AI job displacement refers to workers being laid off when their jobs are automated by AI systems. The fear of job displacement due to AI isn’t new, but recent, rapid developments in AI technology call for more attention to this issue. While nearly all industries are affected by AI in some way, certain jobs may be more susceptible to displacement.
Jobs Impacted by AI Continue to Grow
Positions that require little to no human interaction tend to be the easiest to replace. Jobs such as data entry, bookkeeping, customer service and administration are some of the first to become automated. Jobs that involve data entry and data analysis are especially at risk since these are tasks that AI can do easily and quickly.
While many repetitive jobs have already fallen victim to automation, entry-level white-collar jobs are next in line for automation. Now there are growing layoffs of software engineers, copywriters, financial analysts and legal researchers as well.
Not long ago, coding was the go-to skill to learn for those looking to break into the tech industry. Now, AI models are able to learn programming and can produce code on demand within seconds. While the tech industry continues to grow, many tech employees may find themselves victims of AI job displacement. So far in 2025, more than 80,000 people have been affected by tech layoffs.
Employees at Many Companies Face Layoffs Due to AI
Those who have committed to a specific skill set may find themselves in trouble as companies continue to adopt automation. The World Economic Forum’s 2025 Future of Jobs Report revealed that while 77% of employers plan to upskill their employees to work alongside AI, 41% plan to reduce their workforce and adopt automation. Microsoft, for example, has laid off 6,000 employees in May alone.
Employee Concerns About AI and the Future of Work
The rapid development of AI technology and the recent surge in automation-related lay-offs are real. So, it’s no surprise that so many employees are experiencing concern over their jobs. According to the 2025 AI Disruption Report, 43% of workers know someone who has been laid off due to AI. This growing concern could be fueled by a lack of transparency when it comes to company plans for AI integration and upskilling.
Many CEOs and company executives are on board with adopting AI technology into their business strategies. A survey by PwC found that 49% of business leaders said they had already fully incorporated AI into their core business strategies. Many companies have begun automating human resources, user experience and customer services to reduce their annual costs. While many employers are also investing in upskilling programs for their employees, layoffs may be an unavoidable consequence of automating these positions.
Artificial intelligence is no stranger to controversy. The main debate revolves around the question of whether to embrace or resist the technology. While many workers face concern due to the rapid growth of AI, there is a noticeable generational divide.
Millennials and Gen Z are the most avid users of AI technology, and with this familiarity comes hesitation. These generations express multiple concerns. This ranges from fear of a decline in human interaction to concerns with privacy and data security. The younger generations are more invested in issues surrounding AI. For example, negative environmental impacts are a concern. The use of original creator content to train AI models without consent or compensation is another issue.
Automation Brings Concerns, but Also Potential Benefits
AI job displacement will very likely continue to be a concern for many workers as this technology evolves. However, the worries around AI and job loss are currently being exacerbated by other factors such as slow economic growth and geopolitical tensions.
While we’re seeing a decline in certain jobs, such as cashiers, administrative positions and data entry clerks, there is also another side. We’re seeing growth in jobs that embrace AI but cannot be replaced by it, such as farming, nursing and higher ed.
In industries where we are facing a shortage of professionals, AI is expected to help fill the gap. The healthcare industry, for example, has been struggling to meet the demands of the public in many countries. New AI technology could help. It may assist medical professionals with things like patient management, diagnostics and accelerating research. As a result, they can focus on providing human-to-human care. In education, AI technology can take on administrative tasks such as grading and scheduling. In turn, teachers can provide more personalized interaction with their students.
Future of Work and the Artificial Intelligence Workforce Impact
While it’s clear that automation will have an impact on the future of work, there are steps that both employees and employers can take.
AI Job Joss Predictions and What Employees Can Do
With predictions that AI could eliminate up to half of entry-level corporate positions, it will remain important for new graduates and mid-level employees to acquire a broad skillset and maintain flexibility when it comes to the job market. Tech professionals will have to stay on top of mastering the use of AI technology to grow with the field or else risk being caught up in tech layoffs.
Automation is already targeting repetitive and data-based jobs that rely on specific skill sets. Therefore, it has become essential for workers to build on their areas of expertise. One of the important steps workers can take in the face of this uncertainty is to focus on upskilling. It’s important for workers to have soft skills that will allow them to quickly adapt to future changes in the workforce.
In addition, high-value skills are key. For example, employees can cultivate the following skills and traits to increase employability and help them be successful:
- Creative thinking
- Analytical thinking
- Curiosity
- Resilience
- Leadership
While AI may continue to displace positions across industries, workers will likely be required to work alongside this technology. This makes mastering the use of AI technologies a vital skill. Skills that allow workers to harness and work alongside AI technology, such as technological literacy and knowledge of cybersecurity, are also likely to serve them well.
What Employers Can Do to Ease Stress When Integrating AI
Many employees are eager to gain AI skills and provide input and feedback on their company’s AI integration. Employers can be on top of how AI integration will pan out in the workplace and be transparent with employees to mitigate stress. They can also offer adequate training to help ease the transition into utilizing AI technology.
Employers can also support their employees by encouraging them to broaden their skills and by offering ongoing AI training and education. Companies can work to offer clear career paths internally and support employees who are willing to transition to other positions. Company leaders can aim to keep up the changes and provide continuous communication and support to their employees.
Shaping a Stronger Workforce for an AI-Enhanced Future
The current uncertainty in workforce trends like AI job displacement is an understandable source of concern for many. Fortunately, there is a way to forge a path towards a future where AI enhances jobs and fills gaps in struggling industries. This enhanced future will take cooperation, resilience and flexibility from both company leaders and employees. Clear communication and transparency will be an important part of building a path towards future job security and AI innovation in industries.
Photo by Nazarii Ortynskyi/Shutterstock
