Artificial intelligence is reshaping the job market by automating routine tasks, raising skill demands, and reducing opportunities for entry-level workers. According to a study by the New York Federal Reserve Bank, nearly four in 10 Americans believe that generative AI could diminish the number of available jobs as it advances. The World Economic Forum’s Jobs Initiative study found that close to half (44%) of worker skills will be disrupted in the next five years, with 40% of tasks being affected by the use of generative AI tools and large language models (LLMs).
The Impact on Jobs and Skill Demands
Data from Goldman Sachs suggests that AI could impact up to 300 million full-time jobs worldwide, with significant effects in advanced economies like the United States and Europe. The report projected that up to 18% of work worldwide could be automated. For instance, the share of software development job postings has been declining, and employers may heighten their requirements as they have a larger pool of applicants to choose from, according to job site Indeed.
Indeed’s research showed that in April 2022, 3.2% of software development postings advertised entry-level jobs, compared to 2.1% in 2023, 1.5% in 2024, and 1.2% in 2025. The company’s CEO, Chris Hyams, noted that two-thirds of jobs posted on Indeed’s site list skills that AI can already handle. The share of US job postings mentioning generative AI or related terms has skyrocketed by 170% from January 2024 to January 2025, although these postings are only 2.6% of overall job postings globally.
Expert Insights on AI and the Future of Work
Hannah Calhoon, Indeed’s vice president of AI, emphasized that while AI won’t fully replace jobs anytime soon, most jobs will change dramatically in the next three to four years. Research from the Indeed Hiring Lab found that out of over 2,800 work skills, zero were found “very likely” to be fully replaced by generative AI tools that exist today. Only one in five jobs listed on Indeed are considered “highly” exposed to generative AI.
Sarah Hoffman, director of AI research at AlphaSense and a former vice president of AI and Machine Learning Research at Fidelity Investments, believes that generative AI tools will allow workers to move away from repetitive jobs and into more creative endeavors. She advocates for a “symbiotic” relationship between humans and AI, where workers constantly learn new skills and adapt to the changing landscape.
Adapting to the Changing Job Market
As AI takes over repetitive tasks, workers will shift toward roles that involve overseeing AI, solving unique problems, and applying creativity and strategy. Teams will increasingly collaborate with AI, enhancing human strengths such as decision-making and emotional intelligence. Arthur O’Connor, academic director of data science at CUNY’s School of Professional Studies, notes that the impact of AI on jobs is crucial but poorly studied, with research often swinging between extremes.
O’Connor emphasizes that adapting to this change will require ongoing learning and a fresh approach to how work is done. While there are concerns about the potential negative consequences of AI on the job market, experts agree that AI can empower workers and drive revenue growth when used effectively.
