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Key Takeaways AI is accelerating white-collar job reductions, especially in data-driven roles like software development, customer support and finance.
AI is likely both a cause and accelerator of job losses. Companies use AI not only to automate tasks but also as a justification for streamlining operations and reducing their workforce.
Leaders should identify roles where AI boosts productivity (not just cost savings), train employees on AI systems and redefine roles around creativity, strategy and areas AI can’t address.
Major business publications and leading news sources are reporting a wave of white collar job reductions. Is artificial intelligence the primary reason behind this trend? Many experts believe it is.
Not long ago, business journalists and others speculated on the extent to which AI would replace or affect jobs. It could be described as the “calm before the algorithm.” Now, it is undeniable that algorithms are having a significant impact.
A recent article in The Wall Street Journal specifically addressed AI’s influence on the white-collar job market. Amazon and United Parcel Service (UPS) both announced plans to reduce approximately 14,000 positions each. Retail giant Target is reducing its workforce by 1,800 employees. Molson Coors and General Motors will issue lots of pink slips before year’s end.
Are we experiencing the first white-collar displacement of the 21st century? It appears so. This leaves many entrepreneurs wondering how many of their key employees may be replaced by AI shortly.
Related: Is AI Taking Your Job This Year? Staggering Stats Show How the Technology Is Reshaping the Workforce.
Does AI affect blue or white collar jobs most?
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