Study Finds Almost 50% of US Companies Plan to Cut Workforce Using AI

Your concerns are valid: Many employers are indeed looking to replace workers with automation and AI.

Worried that advances in AI will make job hunting tougher? A new survey suggests you should be. 

Since January 2022, 45% of businesses reported aiming to reduce staff through new automation processes. Additionally, 85% aimed to improve their speed or quality of output.

The true value of AI tools is still unfolding, but the technology has advanced significantly in recent years, making terms like ChatGPT widely recognized. Concurrently, the tech industry has experienced persistent layoffs. Surveys like this highlight the link between these trends.

AI Plans for the Next Two Years: Expect More Staff Reductions

A recent report by the Federal Reserve Bank of Richmond surveyed hundreds of firms about their adoption of automation technology in recent years and their plans for the next two. The findings revealed consistent trends: 45% of firms implemented automation in the past few years to reduce staff, and 46% plan to continue this approach in the next two years.

However, reducing staff wasn't the top priority. The primary reasons for adopting AI over the next 24 months were to enhance business processes (75%), increase employee output (57%), and improve output quality (57%). Only 19% of firms planned to use AI to perform tasks related to hard-to-fill positions.

Manufacturing Leads in Automation Adoption

Not all companies have adopted AI yet. In the past two years, slightly fewer than half started automating tasks, while a little over half had not. The manufacturing sector, known for its use of traditional automation, was more likely to embrace new technologies, with 53% of manufacturing firms implementing automation compared to 43% in the service sector.

Future Implications

If these company goals materialize, we may see increased production across various sectors along with continued job losses, as nearly half of companies replace human workers with AI.

Is Your Job Safe?

Companies have not only used AI to downsize. Another survey found that a quarter of CEOs and executives hoped employees would resign due to anti-remote work policies pushing them back to the office.

The AI hype might still burst if the technology fails to replace entire roles effectively. Until then, the tech job market might remain sluggish. 

In the meantime, explore our articles on fully remote job openings this month, ranging from Microsoft to Nvidia. Additionally, prepare for job interviews with our guides on likely questions and the single most important question to ask during an interview. The market is tough, but AI hasn't taken over everything yet.