Worried about AI taking over jobs? Your concerns are valid, according to a recent survey.

A new report indicates that 45% of US businesses plan to reduce staff through AI and automation. The survey, conducted by the Federal Reserve Bank of Richmond, highlights the increasing trend of companies adopting AI to boost productivity and cut labor costs. Additionally, 85% of businesses aim to enhance the speed and quality of their outputs using AI.

AI’s Impact on Workforce Reductions

The survey polled hundreds of firms about their use of automation technologies since January 2022 and their plans for the next two years. Results showed that 46% of firms intend to use AI for staff reduction in the future, closely mirroring the 45% who have already started.

While staff reduction is a significant goal, it ranks fourth among reasons for AI adoption. The primary goals are improving business processes (75%), increasing employee output quantity (57%), and enhancing output quality (57%). Only 19% plan to use AI to fill roles that are hard to staff.

Manufacturing Sector Leads in Automation

Not all companies have adopted AI yet. Slightly less than half have implemented automation in the past two years, while just over half have not. Manufacturing firms, historically early adopters of automation, are more likely to integrate new technologies, with 53% reporting recent automation efforts compared to 43% in the service sector.

The Future of Jobs in the Age of AI

As AI continues to advance, its potential to replace human jobs becomes more evident. The report suggests a trend towards increased productivity across various sectors, coupled with potential job losses as companies continue to embrace AI.

However, businesses are not solely relying on AI for workforce reductions. Another survey revealed that a quarter of CEOs and executives hope employees will leave due to anti-remote work policies.

Preparing for the Changing Job Market

While AI may streamline operations and improve efficiencies, it still can’t replace all human roles. Job seekers should stay informed about the evolving job market. Check out our latest roundup of remote positions at companies like Microsoft and Nvidia, and prepare for job interviews with our comprehensive guides.

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