AI and the Workforce: How Artificial Intelligence is Changing the Employment Landscape

Artificial Intelligence (AI) is rapidly reshaping the global workforce, creating both opportunities and challenges. AI agents and robots are increasingly taking on tasks traditionally performed by human.

While AI enhances productivity and efficiency, it also raises concerns about job displacement.

The International Monetary Fund (IMF) warns that nearly 40% of jobs worldwide could be exposed to AI. While AI may complement and enhance productivity in some roles, others may face reduced demand, requiring industries to act swiftly to ensure workers are not left behind.

The urgency of reskilling and upskilling is greater than ever, Individuals who do not keep pace with these changes may find it challenging to secure new opportunities in an AI-driven workforce.

The growing adoption of AI in the workforce is driving significant job reductions across multiple industries. Companies are restructuring their operations to enhance efficiency and cut costs by integrating AI-driven automation and robotic systems. Industries that rely heavily on repetitive, predictable, and rule-based tasks are particularly affected.

Roles such as data entry, administrative support, customer service, bookkeeping, assembly line operations, and telemarketing face a high risk of displacement.

AI agents are increasingly performing tasks like scheduling, handling customer inquiries, processing transactions, and generating reports, while robots are automating assembly lines, quality control, and inventory management.

International Monetary Fund. (2024, January 15). Analyse this! Artificial intelligence

AI-Driven Workforce Reductions in Key Industries

DBS Bank recently announced plans to cut 4,000 temporary jobs over the next three years due to AI.

In February 2025, Ocado, a UK-based online grocery specialist, announced the elimination of jobs in its technology and finance divisions, citing AI’s ability to enhance productivity and streamline operations as the primary reason for the job cuts.

Similarly, Autodesk, a San Francisco-based software company, revealed plans to cut approximately 9% of its workforce, as part of a restructuring effort to optimize efficiency and focus on AI-driven growth.

Major tech companies have also implemented AI-driven workforce reductions. Microsoft announced layoffs in January 2025, impacting employees across various divisions, including security, as part of a broader cost-cutting initiative to improve operational efficiency through AI. Amazon has laid off hundreds of employees in its Alexa division as it reallocates resources to focus on AI.

Google announced layoffs affecting employees across multiple units to align with its strategic focus on AI development. Meanwhile, TikTok restructured its Trust and Safety team, resulting in global job losses. In

October last year, TikTok laid off hundreds of employees worldwide, including a significant number in Malaysia, as part of its shift toward greater AI integration in content moderation.

The Jobs and Industries Most at Risk from AI Automation

Clerical and Administrative Jobs

As AI adoption accelerates, administrative and clerical roles are among the first to be replaced, with automation taking over key functions like scheduling and data processing. AI-powered systems can now handle data entry, appointment scheduling, and document processing with near-perfect accuracy.

According to Gilbert Houngbo, Director-General of the International Labour Organization, clerical jobs primarily held by women, face higher risk due to AI adoption. He warns that the rapid pace of AI implementation may not allow workers sufficient time to transition into new roles.

DW News. (2024, March 5). Why some workers won’t have time to adapt to AI

Customer Service and Sales Roles

Customer support and sales roles, particularly in telemarketing, are increasingly at risk as AI chatbots and voice assistants take over routine customer interactions. These AI-powered systems can handle inquiries, troubleshoot issues, and provide personalized responses without human intervention.

Telemarketing jobs, which rely on scripted conversations, are also being automated, leading to a decline in demand for human agents.

Accounting and Financial Clerical Jobs

AI-driven software is transforming financial services, particularly in accounting and bookkeeping. Automated systems now manage tasks such as invoice processing, transaction tracking, reconciliation, and fraud detection, reducing the need for human oversight.

AI’s capabilities are extending to medical billing and other clerical functions, significantly improving efficiency and productivity in financial services.

Manufacturing and Warehouse Jobs

The manufacturing and warehousing sectors are experiencing widespread AI adoption, with robotics streamlining assembly lines, quality control, and inventory management. Amazon’s warehouses, for instance, use AI-powered robots to sort and package products, significantly reducing reliance on human workers.

As AI-driven machinery continues to evolve, fewer human operators will be required, leading to large-scale job displacement.

Retail and Food Service Jobs

Jobs in retail and food service face growing risks as businesses increasingly adopt self-checkout systems, automated food preparation, and AI-powered kiosks.

Additionally, AI-driven customer analytics help companies streamline staffing, further decreasing reliance on human workers.

Software Development and AI’s Impact on Coders

AI is transforming software development by automating coding tasks, debugging, and optimizing code through tools like GitHub Copilot and OpenAI Codex. While this enhances efficiency, it also reduces the demand for entry-level programming, especially with the rise of low-code and no-code platforms.

However, AI is not replacing coders entirely, instead, it is shifting their roles toward system design, problem-solving, and AI integration. The demand for AI, machine learning, and advanced programming skills is increasing, making continuous learning essential for developers to stay competitive and relevant.

Preparing for the Future of Work with AI

Governments and corporations must take proactive steps to prepare the workforce for AI-driven changes. Countries like Singapore and Germany are investing in AI education and workforce training to help workers transition into new roles.

Major corporations, including IBM and Microsoft, are offering free AI training and certifications to support employee upskilling. Policymakers must also implement ethical guidelines and job transition support to ensure AI does not disproportionately harm vulnerable workers.

AI is not the future; it is the present. While many jobs are at risk, those who embrace AI and adapt their skill sets will find new opportunities in an evolving workforce.

The key to job security in an AI-driven world is continuous learning and flexibility. Workers who enhance their technology proficiency, cultivate human-centric skills, and adapt to AI-integrated roles will advance and thrive in this new era of work.