AI's Impact on Employment: Job Creation or Job Loss?

Washington DC, United States Jul 30, 2026 ALN: The fear that artificial intelligence (AI) is killing jobs has been fueled by ongoing layoffs across corporate America, most recently at companies like Visa. Just this week, the payments giant revealed plans to shed 7% of its head count, a move that will impact 2,600 employees. While Bloomberg reported that AI wasn’t the only factor driving the layoffs, CEO Ryan McInerney clearly cited it in his memo, noting AI would “shape the way work gets done at Visa.” Some of its peers, like PayPal, have also made bold cuts to their workforce in recent months. Companies in various sectors have been slashing customer service jobs, replacing some of them entirely with artificial intelligence.

This trend has raised significant concerns among workers and labor advocates, who argue that the rapid adoption of AI technologies could lead to widespread job displacement. The narrative surrounding AI's impact on employment is often dominated by stories of layoffs and workforce reductions, which contribute to a growing anxiety about job security in an increasingly automated world. However, the reality of AI's impact on employment is more nuanced and complex than the fear of job losses suggests.

Despite the headlines about layoffs, researchers have repeatedly pointed out that these layoffs still don’t point to widespread job displacement. In fact, a new report from ZipRecruiter suggests that some companies may actually be adding jobs due to AI. When ZipRecruiter surveyed over a thousand recruiters and hiring leaders, more than a third of them—nearly 35%—said AI will increase head count at their company in the near future. Almost a quarter of them said hiring due to AI had already increased accordingly; over a third said AI had already enabled them to accelerate their recruiting process. Nearly as many respondents (32.5%) said the mix of jobs would change in the next three to five years as a result of AI, even if head count didn’t dramatically change.

This duality—job losses in certain sectors versus job creation in others—highlights the transformative nature of AI. As AI technologies become more sophisticated, they are not only replacing specific tasks but also creating new opportunities that did not exist before. For example, roles in AI development, data analysis, and machine learning are on the rise as companies seek to harness the power of these technologies. This creates a demand for skilled workers who can navigate the changing landscape of work.

By comparison, the number of people who said they were actively hiring at a lower rate due to AI was far smaller, at 16%, and only 14.4% said they had plans to decrease head count in the coming years. What does seem to be changing, however, is job expectations: Nearly three-quarters of people surveyed said AI skills were now either a major advantage or requirement for certain roles; over half of employers also expect that their workers will now be more productive. This shift in expectations underscores the importance of adapting to the evolving job market, where technological proficiency is becoming increasingly vital.

Economists and researchers have warned for some time now that the narrative around AI-related job displacement is misleading and overestimates the impact of AI thus far. Even AI leaders like OpenAI’s Sam Altman are now backing away from their assertions that the technology would eliminate jobs en masse. At companies like JPMorgan Chase, AI-related productivity gains have led to significant job changes in some divisions but have not meaningfully reduced overall head count or expenses. “We are preparing to make sure we can retrain our people,” CEO Jamie Dimon said recently. “We have had discrete areas where we did reduce jobs by 30% or 40%, and most of those people [were] offered jobs elsewhere.”

This proactive approach to workforce management is crucial as organizations navigate the complexities of integrating AI into their operations. Companies that prioritize retraining and upskilling their employees are more likely to retain talent and maintain a competitive edge in the market. The ability to adapt to new technologies and workflows can determine not only the survival of individual workers but also the overall success of organizations in the AI era.

There is, however, evidence that entry-level jobs are at risk: ZipRecruiter found that those jobs were particularly exposed and that nearly 40% of employers had started reassigning entry-level tasks—like data entry and processing—to AI. For almost a third of companies, AI has raised the bar for entry-level candidates, a shift that echoes the experience of some young workers navigating the job market. This trend raises questions about the future of work for new entrants to the labor force, who may find themselves competing with increasingly capable AI systems for job opportunities.

Moreover, the implications of AI on employment extend beyond just job creation and loss; they also encompass issues of equity and access. ZipRecruiter’s findings also captured another factor that might influence how employers talk about the effects of AI on their workforce. According to the survey, male respondents were more likely than female respondents to say that AI would help create jobs at their company. This gender divide in how leaders think AI will impact jobs also reflects a broader split in sentiment between men and women. On the whole, women tend to be more skeptical of AI or worry about how it might impact them—and given they dominate some of the sectors that are most exposed to AI, it’s not hard to imagine why.

As the conversation around AI and employment continues to evolve, it is essential to consider the diverse perspectives and experiences of workers across different industries and demographics. Policymakers, business leaders, and educators must work together to ensure that the benefits of AI are shared broadly and that workers are equipped with the skills they need to thrive in an AI-driven economy. This includes investing in education and training programs that focus on the development of AI-related skills, as well as fostering a culture of lifelong learning that encourages workers to adapt to changing job requirements.

In conclusion, while the fear of job loss due to AI is valid and warrants serious consideration, it is equally important to recognize the potential for job creation and transformation that these technologies bring. The future of work will likely involve a complex interplay of job displacement, new opportunities, and changing skill requirements. By understanding and addressing these dynamics, stakeholders can better navigate the challenges and opportunities presented by AI, ultimately shaping a more inclusive and resilient labor market for all.