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AI Isn’t Killing Jobs—Yet. But Entry-Level Workers and Middle Managers Should Be Watching Closely

July 23, 2025

Artificial intelligence adoption is increasing among U.S. firms, yet research from Goldman Sachs, Brookings, and other organizations indicates it has not led to widespread job losses as initially feared. Instead, AI investment is associated with business growth, increased employment, and significant productivity gains, with companies reporting labor productivity improvements between 23% and 29%. However, the workforce is experiencing a complex transformation where certain roles like call center positions are slowing, while demand for college-educated workers and those with STEM degrees is rising.

Who is affected

  • Entry-level workers and those in early-career positions
  • Middle managers as companies flatten hierarchies
  • Non-college-educated workers (experiencing a 7.2% decline in AI-adopting firms)
  • Call center employees (experiencing slowing employment)
  • Market research analysts and sales representatives (facing potential task automation of up to 67%)
  • College-educated workers and those with STEM degrees (experiencing increased demand)
  • Larger firms with resources to deploy custom AI tools (benefiting)
  • Tech workers (79% report increased AI use)

What action is being taken

  • AI usage among U.S. firms is increasing, rising from 7.4% to 9.2% in one quarter according to Goldman Sachs
  • Companies are actively reshaping their workforce, increasing college-educated workers by 3.7% while reducing non-college educated staff by 7.2%
  • Organizations are flattening hierarchies, reducing middle management positions
  • Amazon is deploying AI agents to upgrade internal apps, saving $250 million
  • Microsoft is now using AI for up to 30% of its code development
  • 40% of employers are planning to cut jobs where AI can automate tasks

Why it matters

  • AI is creating a complex workforce transformation rather than eliminating jobs outright
  • Significant productivity gains (23-29%) are being realized by firms integrating generative AI
  • The shift favors highly-skilled workers and larger firms, potentially exacerbating inequality
  • The transition creates uncertainty for workers, with 38% of tech workers believing their companies will replace jobs with AI within five years
  • More than half of Americans are worried about AI's impact on the workplace according to Pew Research
  • Certain industries and roles are more vulnerable to disruption than others

What's next

  • No explicit next steps stated in the article

Read full article from source: The San Diego Voice & Viewpoint