More and more business leaders are warning that white-collar positions could be under serious threat due to artificial intelligence. But the actual impact of AI on employment right now is more complex than those warnings suggest.
According to recent data from Challenger, Gray, and Christmas, a consultancy that tracks workforce trends, job losses tied directly to AI are still relatively rare. Of the nearly 287,000 layoffs announced this year, only 20,000 were due to automation, and just 75 were clearly connected to AI adoption. Most job cuts were driven by broader economic forces, including federal budget changes and market conditions.
Andrew Challenger, senior VP at the firm, pointed out that while AI is changing how some roles function, it hasn’t yet led to widespread replacement of workers. Few HR leaders are reporting large-scale job losses because of AI.
However, several high-profile CEOs have voiced strong opinions about the disruptive potential of AI. Amazon’s CEO, Andy Jassy, recently commented that AI would eventually lead to fewer jobs in some departments, thanks to productivity gains. However, he also noted that new kinds of roles would likely emerge alongside those changes.
Meanwhile, Ford’s Jim Farley made headlines for saying AI could replace half the country’s white-collar workforce. He was echoing remarks from Anthropic’s CEO and focusing more on strengthening the blue-collar segment.
Experts suggest that AI’s effect on hiring is more indirect. With economic pressure mounting—partly due to inflation and trade policy shifts—companies are cutting costs by investing in AI tools instead of hiring new staff. Josh Bersin, who runs a workforce strategy firm, said many organizations are giving the green light to buy AI solutions while simultaneously putting a freeze on new hires.
Some companies have made their stance explicit. Shopify’s CEO instructed teams to justify why they need additional resources rather than using AI. Duolingo has adopted a similar strategy, with leadership stating that new hires will only be considered if tasks can’t be automated further.
Even companies developing AI are cutting back in areas unrelated to AI to focus more on automation technology. Tech giants like Microsoft, Meta, Alphabet, and Salesforce have trimmed non-AI roles while boosting investment in AI development. Microsoft, for instance, has laid off thousands, including software engineers, as it leans on tools like Copilot that are now generating a sizable chunk of its code.
Some analysts argue that AI is being used as a convenient excuse for job cuts that are really about cost management. In many cases, firms may highlight AI to soften the optics of layoffs caused by weak financial performance.
AI is also transforming how hiring is done. New startups offer tools that automate resume screening and candidate interviews. IBM, for example, has replaced several hundred HR roles with AI and used the savings to hire more technical and sales staff.
While AI is shifting how companies operate and hire, experts agree that economic conditions still play a much larger role in job trends. AI might change the nature of work, especially in tech-heavy roles like software development, but so far it hasn’t taken over entire occupations.
Given the rapid pace at which companies like D-Wave Quantum Inc. (NYSE: QBTS) are bringing innovative AI solutions to the market, the jury is still out on the potential for major job losses as automation replaces human labor.
NOTE TO INVESTORS: The latest news and updates relating to D-Wave Quantum Inc. (NYSE: QBTS) are available in the company’s newsroom at https://ibn.fm/QBTS
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