How AI is affecting the job market and how workers can adapt

Automation and job transformation

As AI becomes smarter and more accessible, the effect on the job market will only grow. According to Anthropic CEO Dario Amodei, AI could wipe out half of all entry-level white-collar jobs in the next one to five years and cause unemployment to spike by 10% to 20%.

While AI isn't powerful enough to take over managerial and higher-level duties, entry-level roles are typically focused on skills and duties that are easier for AI to automate.

"The old 'AI isn't going to take your job, but someone who knows how to use AI will' is actually not true," said Shelly DeMotte Kramer, founder and principal analyst at Kramer & Co. "In many, many instances, AI is absolutely going to take jobs, and I think we do people a massive disservice when we say these words ad nauseum."

But AI will affect far more than just white-collar entry-level roles. In a recent Pew Research study, AI experts agreed that the occupations most at risk from AI in the next 20 years include the following:

• Cashiers.
• Truck drivers.
• Journalists.
• Factory workers.
• Software engineers.

AI's diverse capabilities and rapid advancement suggest that a variety of roles may be affected. For example, journalists may be affected by generative AI's ability to create content, while truck drivers might start to see their roles taken over by self-driving vehicles.

"Any job that involves pattern recognition and rule-based decision making is vulnerable," Kramer said. "Any job that involves data entry or administrative support is ripe for automation, and we are seeing AI also powering customer service operations and contact centers at a rapid pace."

Some roles and industries may be heavily affected, leading to job transformation and changes in job duties, but not total replacement. For example, healthcare is already being transformed with AI-powered tools and technology.

"I've had conversations with radiologists who have shared that AI is often faster -- and better -- than they are at reading X-rays and scans -- and they see this as indicative of what's ahead," Kramer said.

AI's economic impact

As the job market shifts, the economy will feel the ripple effects of AI, too.

PwC research indicates that AI could contribute up to $15.7 trillion to the global economy by 2030 -- with China and North America seeing the biggest gains -- and cause a 26% boost in GDP for local economies. This growth projection is tied to AI's capabilities, including improving productivity, lowering operational costs and spurring innovation.

A more conservative estimate from MIT puts potential GDP growth at 1% within the next 10 years, with 5% of tasks estimated to be profitably performed by AI.

This economic gain comes with an uneven distribution of benefits in the workforce. AI is expected to create millions of new jobs, but it may not be enough to offset the ones lost.

According to the World Economic Forum (WEF), AI could affect nearly 50 million U.S. jobs in the coming years. WEF's Future of Jobs Report 2025 found 40% of employers expect to reduce their workforce where AI can automate tasks.

Certain industries are already beginning to see the economic effects of AI.

According to the Wall Street Journal, IT unemployment rose from 3.9% in December 2024 to 5.7% in January 2025, due at least in part to AI. Many of the jobs hit by unemployment are being overtaken by AI, such as clerical and administrative work. Many companies also plan to use AI for these tasks going forward, meaning many of these positions will likely be fully eliminated, a strategy described as cost avoidance.

Telecommunications company BT Group announced in 2023 it would cut 50,000 jobs by 2030 -- nearly 40% of its workforce -- to automate jobs such as customer service and network management.

Skills for the future

With AI poised to make so many changes to the world of work, many workers are uncertain about what the future may look like. However, those who are prepared for change and ready to adapt will have the best chance of successfully embracing the changes that AI will bring.

The emergence of AI is also spurring new job titles and new in-demand skills.

"People who can learn to work alongside AI and who can help design workflows where AI is used to enhance human capabilities and strengths are desperately needed," Kramer said. "People with this knowledge and skillset are in short supply. Demand is great, but time is of the essence."

AI is creating several new roles, including the following:

• AI ethics officers.
• Prompt engineers.
• Machine-learning specialists.
• Automation engineers.

Key skills required for existing roles will also change. According to WEF, employers expect 39% of key skills required in the job market to change by 2030, and technological skills -- especially relating to AI and big data -- are projected to grow in importance more rapidly than any other skills in the next five years.

Workers can develop new skills and prepare for the changes AI may bring through upskilling and continuous learning. Workers can gain AI skills through various educational pathways and training opportunities, including the following:

• Online courses and bootcamps in AI and data literacy.
• Certifications in specific AI tools or machine learning.
• Company-sponsored upskilling programs.
• Workshops and micro-credentials offered by professional associations.

Regardless of job title or duties, all workers should have a basic understanding of AI and access to tools and training. Bridging the AI skills gap doesn't just bolster workforce skills -- it can build trust throughout the organization and empower the workforce.

"When you make something taboo, or you only provide access and training to a select few, the message you send to the rest of the team is that you don't trust them," Kramer said. "Conversely, by saying, 'This is a new age, and we are going to navigate and learn this together,' leaders set the stage for success with AI."

How businesses can adapt

As all these changes to employment and the economy occur, it's not just employees who need to prepare -- businesses should be proactively shifting their workforce strategies to support the business and the workforce.

Creating a targeted strategy to integrate AI can help businesses plan ahead and keep workers informed on how AI will be used.

"Being honest with your employees at every level in the organization, being a champion for upskilling and reskilling, finding internal early adopters and use cases that show what's possible [by] leveraging AI sets the stage for interest, experimentation, adoption and optimism -- which are all infinitely better than a workforce composed of people who worry daily about job security," Kramer said.

Alison Roller is a freelance writer with experience in tech, HR and marketing.