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How Will AI Impact the Labor Market?

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Goldman Sachs hosted a discussion with economists from MIT and its own research team examining AI’s impact on the labor market. They project that AI-driven automation could displace about 9% of U.S. workers over a decade but emphasize historical patterns suggest new jobs will be created to offset losses, mitigating permanent unemployment risks. Experts highlight that adoption rates, task complexity, and whether AI complements or replaces workers will shape outcomes, with uncertainty remaining on the long-term net effects on jobs and wages across different sectors.

https://www.goldmansachs.com/insights/goldman-sachs-exchanges/how-will-ai-impact-the-labor-market

Companies That Add More AI Also Add More People

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A survey of over 21,000 US firms by Ramp and Revelio Labs reveals that companies making significant financial investments in AI tend to add jobs at a higher rate than low-intensity adopters, with job growth appearing six to 12 months after AI adoption. High-intensity AI adopters grew headcount by 10.2 percent over two years, primarily by hiring entry-level workers with skills in AI usage, though overall labor market improvements remain uneven. This trend suggests that AI investment is associated with workforce expansion, especially in roles supporting AI deployment and management, despite ongoing concerns about costs, control, and trust in AI providers.

https://www.theregister.com/ai-and-ml/2026/07/02/companies-that-add-more-ai-also-add-more-people/5266134

Zuckerberg ‘Admits’ Meta’s Layoffs Were Ineffective

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Mark Zuckerberg acknowledged that Meta’s recent layoffs and restructuring around AI agent development have not yielded the expected acceleration in progress, revealing flaws in the company’s strategic bets. The article critiques Meta’s management style as overly reliant on intuition or “vibes,” leading to misdirected efforts like the metaverse push and misguided AI adoption strategies that have caused turmoil, layoffs, and organizational disorder without clear gains. This approach has left Meta struggling to effectively integrate AI developments and maintain coherent direction amid rapidly evolving technology trends.

https://eshumarneedi.com/2026/07/03/zuckerberg-admits-metas-layoffs-were.html

AI Job Grief: The Unnamed Psychological Crisis Hitting Tech Workers

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AI-driven job displacement is causing a unique form of psychological grief among tech workers that extends beyond typical fear or anxiety, as it threatens their professional identity and sense of self. This grief is often disenfranchised, lacking social acknowledgment or institutional support, which complicates emotional processing and recovery, especially as AI continues to evolve rapidly, leaving no stable endpoint for acceptance. The resulting emotional distress manifests in symptoms like anxiety and depression and affects workforce behavior, including sabotage of AI implementations, while existing models of grief and institutional responses fail to adequately address this ongoing crisis.

https://jackmaguire.org/blog/ai-job-grief/

End of Conversation: We Are Training Employees to Talk to Bots. They Must Learn to Talk to Other People.

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As generative AI becomes widespread in workplaces, businesses are investing heavily in training employees to communicate effectively with bots, but experts warn that preserving human-to-human conversation skills is crucial. Declining interpersonal communication, especially among younger generations who prefer texting and voice notes over calls, risks harming business relationships and causing communication breakdowns. To address this, companies should develop clear communication strategies that integrate AI as a support tool while prioritizing direct conversations, training employees in soft skills like active listening and empathy to maintain authentic human connections essential for organizational success.

https://www.iod.com/director/articles/end-of-conversation-we-are-training-employees-to-talk-to-bots-they-must-learn-to-talk-to-other-people/

Robot Nation: China’s Shift From Humans to Humanoids

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China is increasingly replacing human workers with AI-enabled robots and humanoids in industries like manufacturing to address its shrinking workforce, which is projected to fall to 300 million by the end of the century due to demographic decline. This shift toward automation reflects Beijing’s strategy to counter labor shortages and sustain economic productivity amid an aging population.

https://www.afr.com/world/asia/robot-nation-china-s-bid-to-beat-its-demographic-decline-20260630-p60b7u

AI Is Changing Work. It Might Also Be Limiting How Expertise Is Built

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As organizations adopt AI to automate entry-level tasks, Deloitte research highlights a “broken skills ladder” where fewer entry-level hires lead to diminished opportunities for workers to develop expertise over time. This shift risks long-term shortages of proficient, experienced talent, emphasizing the need for public sector involvement to rebuild pathways that support skill development and expertise growth.

https://www.deloitte.com/us/en/insights/industry/government-public-sector-services/ai-future-of-work-reskilling.html

Computer Scientist on Why He Believes Mass Layoffs Due to AI Is a ‘Convenient Excuse’

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Princeton computer scientist Sayash Kapoor argues that many corporate layoffs attributed to AI are actually driven by other factors like post-pandemic overhiring and shareholder pressure, making AI a “convenient excuse” rather than a primary cause. He believes AI will reshape job roles by automating certain tasks but not cause mass job losses, though the reduction in entry-level hiring could pose challenges for workforce development.

https://www.npr.org/2026/06/30/nx-s1-5864243/computer-scientist-on-why-he-believes-mass-layoffs-due-to-ai-is-a-convenient-excuse

The AI Jobs Debate Just Got Messier

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A recent report by Ramp and Revelio Labs shows that companies heavily investing in AI have increased headcount by over 10%, including in entry-level roles, suggesting AI can contribute to firm expansion rather than just job displacement. While AI-related layoffs have impacted many workers, especially younger and entry-level employees, growth is strongest in tech-forward firms where AI lowers production costs and boosts output, potentially widening the gap between well-resourced companies and others. The findings challenge broad assumptions that AI universally eliminates jobs, highlighting its complex impact on workforce dynamics.

https://techcrunch.com/2026/06/29/the-ai-jobs-debate-just-got-messier/

Bosses Are Becoming Obsessed With AI, Using It to Make Every Decision, Barraging Their Employees With Nonsensical ChatGPT Directives, and Even Asking It Who to Fire

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An increasing number of bosses are excessively relying on AI tools like ChatGPT to make every business decision, impose unrealistic directives, and even determine employee hirings or firings, creating toxic and unproductive workplaces. Employees report constant shifts in responsibilities and strategies based solely on AI interactions, diminished human input, and a disconnect from workplace realities, often leading to frustration, reduced morale, and resignations. This trend highlights the challenges organizations face in integrating AI without undermining human judgment and effective workforce management.

https://futurism.com/artificial-intelligence/bosses-obsessed-with-ai

Most Companies Are Already Failing at AI. They Just Don’t Know It Yet.

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Many companies are wrongly assessing their progress with AI by relying on inadequate metrics, leading to widespread but unrecognized failure in effectively implementing AI initiatives. The article warns that the opportunity to correct course and achieve meaningful AI integration is shrinking faster than most organizations realize.

https://www.entrepreneur.com/business-news/most-companies-are-already-failing-at-ai-they-just-dont-know-it-yet

California Becomes the First State to Launch a Tool to Monitor and Track Artificial Intelligence’s Impacts on the Workforce

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California has launched the first state-level AI-Unemployment Tracker, an online tool developed with the California Policy Lab and Employment Development Department to monitor and detect AI-related job displacement trends. The dashboard provides monthly data to help policymakers and workers anticipate workforce impacts and design targeted support such as retraining and job-search assistance, although current analysis shows no widespread unemployment increase from AI exposure statewide. This initiative is part of Governor Newsom’s broader executive order agenda to prepare California’s workforce for AI-driven economic changes through data-driven governance and expanded training programs.

https://www.gov.ca.gov/2026/06/25/california-becomes-the-first-state-to-launch-a-tool-to-monitor-and-track-artificial-intelligences-impacts-on-the-workforce/

Dear Graduates: Reflections on the AI Workplace

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The article addresses the class of 2026, emphasizing that while AI is reshaping the workforce by displacing an estimated 92 million jobs but creating 170 million new ones by 2030, meaningful work remains essential for well-being and identity. It encourages graduates to seek roles that align with their values and strengths, adapt alongside AI rather than compete with it, and continuously learn, highlighting growth in AI-related fields, healthcare, and other areas reliant on human empathy and judgment. The piece underscores the importance of job crafting and cautions against pursuing prestige over meaning in a rapidly evolving labor market.

https://www.psychologytoday.com/us/blog/on-vitality/202606/dear-graduates-reflections-on-the-ai-workplace

From Regulatory Constraint to Strategic Compass: Why the EU AI Act Can Strengthen Organisations and HR

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The EU AI Act, initially seen as a compliance burden, can be a strategic tool for organizations, particularly in HR. It encourages a shift from fragmented AI initiatives to a purpose-driven approach that emphasizes transparency, fairness, and human oversight. By aligning with the Act, organizations can modernize their HR technology, redefine work and skills, and position HR as a strategic governance partner.

https://www.marsh.com/en-gb/services/risk-consulting/insights/eu-ai-act-strenghten-organisations-hr.html

The Anatomy of an AI-Native Org

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AI has drastically reduced the need for translation tasks that formed the broad middle layer of traditional software organizations, collapsing the “how” layer where most headcount existed. The resulting AI-native org features a small “why” group defining purpose, a larger “what” group focused on judgment and defining quality, and a smaller, highly skilled “how” group managing complex engineering work and building trust systems for AI agents that now handle most conversion tasks. This shift demands managers who contribute directly to outcomes and engineers who focus on defining correctness and maintaining high-level architectural control rather than routine translation work.

https://ajeygore.in/content/the-anatomy-of-an-ai-native-org

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