The Impact of AI on the Workforce: Concerns and Predictions
As artificial intelligence (AI) continues to advance and become more integrated into various industries, concerns about its impact on the workforce are growing. A recent MIT study found that an estimated 11.7% of jobs could already be automated using AI, and surveys have shown that employers are eliminating entry-level jobs due to the technology. This has led to fears that AI will lead to significant job losses and changes in the labor market.
According to Eric Bahn, co-founder and general partner at Hustle Fund, AI will have a significant impact on the workforce in 2026, although the exact nature of this impact is still uncertain. “I want to see what roles that have been known for more repetition get automated, or even more complicated roles with more logic become more automated,” Bahn said. “Is it going to lead to more layoffs? Is there going to be higher productivity? Or will AI just be an augmentation for the existing labor market to be even more productive in the future?”
Expert Predictions and Concerns
Marell Evans, founder and managing partner at Exceptional Capital, predicts that companies will pull money from their labor budgets to invest in AI, leading to layoffs and a negative impact on the employment rate. “I think on the flip side of seeing an incremental increase in AI budgets, we’ll see more human labor get cut and layoffs will continue to aggressively impact the U.S. employment rate,” Evans said.
Rajeev Dham, managing director at Sapphire, and Jason Mendel, a venture investor at Battery Ventures, also agree that AI will lead to a shift in resources from labor to AI in 2026. Mendel notes that AI will start to surpass its current role as a tool to make existing workers more efficient, and will begin to automate work itself. “2026 will be the year of agents as software expands from making humans more productive to automating work itself, delivering on the human-labor displacement value proposition in some areas,” Mendel said.
The Potential for Job Displacement
While some AI companies argue that their technology does not eliminate jobs, but rather helps shift workers to higher-skilled jobs, not everyone is convinced. Antonia Dean, a partner at Black Operator Ventures, notes that companies may use AI as a scapegoat for layoffs or reductions in labor costs, even if they are not actually investing in AI projects. “The complexity here is that many enterprises, despite how ready or not they are to successfully use AI solutions, will say that they are increasing their investments in AI to explain why they are cutting back spending in other areas or trimming workforces,” Dean said.
As the use of AI continues to grow and evolve, it is essential to consider the potential impact on the workforce and the economy as a whole. While some experts predict that AI will lead to significant job displacement, others argue that it will augment the existing labor market and lead to increased productivity. Ultimately, the true impact of AI on the workforce will depend on how it is developed and implemented, and it is crucial to approach this issue with a nuanced and informed perspective.
