Simply put
- AI is increasingly taking over white-collar jobs, with major tech firms planning significant layoffs—tens of thousands in 2025—as AI becomes more integrated into their operations.
- A report suggests that 40-80% of white-collar tasks may soon be automated.
- Experts caution that AGI could lead to widespread unemployment across both white and blue-collar sectors.
Every week seems to bring news of layoffs driven by AI. In May, Microsoft announced over 6,000 job cuts, largely due to software engineers turning to AI for coding tasks. Similarly, IBM let go of thousands in its HR department around the same time. Earlier in the year, Meta also reduced its workforce by 3,600 employees, as part of a shift toward an AI-centered strategy. These layoffs are not just isolated events; they’re indicative of significant changes shaking up the global economy.
Just last week, unemployment claims hit their highest level since last fall, as various companies from Procter & Gamble to Starbucks announced plans for major layoffs. The uncertainty stemming from recent trade tensions is evident, but the rise of AI-driven systems seems to be the more pressing matter, leading to a dramatic shift from traditional job roles.
We’re witnessing some immediate consequences of embracing AI: a sort of economic upheaval. And if things seem bleak now, we haven’t even reached the full potential of what AI can do, particularly with the development of artificial general intelligence, or AGI. This form of AI could eventually learn and adapt across numerous tasks with ease, much like a human. It’s a worrying prospect.
While many experts believe AGI is still a long way off, an increasing number suggest it could emerge within the next five years.
Dario Amodei, CEO of Anthropic, made headlines recently with a warning that AGI systems might appear within just two to three years. Former OpenAI research analyst Daniel Kokotajlo, who left the company over concerns about safety, indicated that AGI might be realized by the latter half of 2027.
Ray Kurzweil, Google’s director of engineering, predicts that we might reach AGI by 2029, reaffirming timelines he established previously in his book “The Singularity Is Near.”
“We’re enthusiastic about having AI agents collaborate, sharing data and services,” stated Ben Goertzel, CEO of SingularityNet. But the potential leap to “superintelligence” may present challenges for years to come. Goertzel believes that once we achieve human-level AGI, it could transition quickly to superintelligence, due to its ability to create and improve technology.
Many experts warn that this evolution into superintelligence could have disastrous effects on traditional employment—impacting everyone from executives to professionals like doctors and scientists.
However, the path to AGI is facing numerous hurdles.
We’re not approaching anywhere
AGI goes far beyond just automating routine tasks; it aims to reason, adapt, and excel in various fields better than humans can. “When AI becomes just a bit smarter than us, massive unemployment will follow,” Goertzel noted. “It may start with lower-tier white-collar jobs, but it would likely extend to skilled trades like plumbing and electrical work.”
Goertzel pointed out that while AI has surpassed human accuracy in medical diagnostics, sectors like healthcare still resist changes due to established hierarchy and licensing issues.
“Entry-level roles won’t see protection, but those in senior positions might, as they control AI deployment,” he added. “Of course, they’ll be reluctant to let AI replace them.”
Interestingly, Goertzel thinks blue-collar jobs are not experiencing AI disruption as rapidly as white-collar roles—mainly because robotics technology hasn’t advanced at the same rate as software AI. This explains why office jobs are more vulnerable to layoffs than those in manual labor.
Half of entry-level white-collar roles could vanish
In a recent discussion, Amodei expressed concerns that AI-caused disruptions in jobs are not decades away. He estimates that 50% of entry-level white-collar jobs could fade out within the next one to five years, encompassing fields like law, finance, consulting, and technology.
Many of these human occupations are becoming obsolete due to advances in AI for analytics, writing, and decision-making. In another interview, he reiterated that changes will emerge quicker than we may expect.
“What stands out about this AI boom is that it’s broader and faster than previous tech shifts,” Amodei said. “I’m genuinely worried about its labor impact. It’s all happening so rapidly that people may not adjust quickly enough.”
White-collar jobs are already under threat
If your work involves sitting behind a screen, you might already be in danger of being affected by AI.
“The jobs most at risk tend to require higher education, offer higher pay, and involve cognitive tasks,” indicated Tobias Sytsma, an economist at RAND Corporation. “Historically, jobs in this category have seen reductions due to AI advancements.”
According to a report from the Federal Reserve Bank of New York in April 2025, graduates in computer engineering face unemployment rates double that of those with degrees in art history, at 7.5% compared to 3%.
Here are some occupations deemed most exposed to AI:
- Software Engineer: Companies are leveraging AI for coding tasks. For instance, Microsoft recently enhanced GitHub Copilot into a fully-fledged AI tool.
- Human Resources: AI is utilized to screen resumes, assess employee performance, and even generate termination letters.
- Paralegals and Legal Assistants: AI can efficiently summarize case law and draft legal documents.
- Customer Service Representatives: Chatbots are now handling routine customer interactions, reducing the need for call center roles.
- Financial Analysts: AI systems can analyze extensive data sets and produce reports faster and more accurately than humans.
- Content Creators: Writers, editors, and designers are facing competition from generative AI tools, leading to significant industry discussions on AI impact.
Sytsma noted, “Our research indicates that primarily white-collar jobs, which require advanced education and cognitive skills, are the most exposed.” However, health professionals still enjoy a degree of protection due to regulatory barriers. “But exposure to these tools is steadily rising. What follows remains uncertain,” he added.
“Most tasks are repetitive and based on existing examples, enabling automation without needing fully developed human-level AGI. While jobs that require creativity might be tougher to replace, most economic activities don’t rely on that,” he stated.
Goertzel even suggested that superintelligence could alter governance roles. “Even something as significant as the presidency might be suitable for automation,” he remarked.
Whether AI brings about a future free of work or leads to an imbalanced society, one thing is evident: if you believe AI is only targeting blue-collar roles, you’re already falling behind. Your office neighbor could soon be replaced, and it’s not going to wait.
