AI Job Market Sees Significant Growth
New York (CNN) – The artificial intelligence sector is booming, presenting promising career opportunities for job seekers. A recent analysis from the University of Maryland and LinkUp indicates a surge in AI-related job postings over the last two years, a trend fueled by the growing prominence of AI technologies like ChatGPT.
“The analysis showed a clear ‘ChatGPT effect’,” says Anil Gupta, a professor at the University of Maryland’s Smith School of Business, referring to the impact of OpenAI’s chatbot on job postings.
AI Job Growth Outpaces Overall Job Market
The AIMaps program, a collaboration between the University of Maryland and LinkUp, tracks the growth of AI jobs across various sectors. The data reveals a significant increase in AI job postings in the United States since the end of 2022:
- AI job postings have spiked 68%.
- Overall job postings have declined 17% during the same period.
Additional data from ZipRecruiter shows that AI job postings on their site grew by 124% from 2023 to the end of 2024. LinkedIn also identified AI engineer and AI consultant as the fastest-growing jobs in the US in January.
Gupta noted, however, that IT job postings (including those that write programs not related to AI) have also declined 27% since the end of 2022.
The Impact of AI on the Workforce
While AI creates new types of jobs, it has also triggered workforce adjustments. Tech giants have announced significant investments in AI, sometimes accompanied by layoffs.
- Google laid off workers in its Google Assistant and hardware divisions after investing in AI startup Anthropic.
- A World Economic Forum survey suggests that 41% of employers intend to downsize their workforce in favor of AI by 2030.
“We already know GitHub Copilot and other AI tools are able to do 60-70% of the coding,” Gupta said. “Four people can do the job of 10.”
Global AI Race and Emerging Technologies
The global AI landscape is rapidly evolving. The emergence of DeepSeek, a Chinese startup, has created waves in the market with an AI model developed at a lower cost than its US counterparts.
Gupta believes DeepSeek’s open-source approach will expedite the AI industry’s growth.
“This will lead to an even faster deployment of AI technology in every industry.”
High Demand in Consulting Sector
AI jobs are particularly sought after in the consulting sector, as firms enlist consultants to develop AI tools specifically – such as machine learning or product management for generative AI tools.
- Accounting firm Ernst & Young reported in December that 97% of business leaders whose organizations invested in AI saw positive returns on investment.
However, concerns about privacy and security may slow down the adoption of the technology, says Julia Pollak, chief economist at ZipRecruiter.”, “### Efficiency Concerns Prompt Changes
Companies are focusing on “doing more with less,” as stated by Lisa Simon, chief economist at Revelio Labs. Companies have been:
- Centralizing functions
- Eradicating unnecessary roles
- Reviewing every function and reducing layers
Pollak said that’s a direct result of high interest rates and reduced access to credit.
Pollack adds that it is too early to tell how the AI boom is impacting specific jobs. Some fields, like content writing, may be more efficient because of AI tools.
Companies efforts to “do more with less” go beyond the use of AI in the workplace. Revelio Labs reported that US companies are increasingly hiring high-skilled positions abroad, especially those suitable for remote work.
Long-term Impacts and Predictions
Gupta offers an optimistic view of AI’s impact, suggesting that the corporate world will adapt to the efficiency gains enabled by the technology.
“There was a time when a six-day work week was the norm, and now (we have a) five-day work week,” Gupta said. “Could it be that in 10-20 years, it’s a four-day work week? I think the prospects of that are very, very high.”
