AI AND JOBS

The impact of the AI revolution on jobs is no longer theoretical—it’s already happening. In fact, I believe we’re at a real tipping point right now.

Here’s what I’ve been seeing.

If you follow quarterly earnings reports from major public companies, as I do, you’ll notice a big shift this quarter. For the first time, many companies are openly discussing their AI initiatives—and, more importantly, quantifying the impact on jobs. Some are announcing layoffs directly tied to AI-driven productivity gains, while others are eliminating roles they had originally planned to add.

That’s a big deal at such an early stage of AI development.

To understand why, it helps to know how CEOs operate. Public company CEOs answer to their boards of directors, who in turn represent shareholders (the company’s owners). A CEO’s performance is judged primarily on sales growth and profit growth—metrics that directly drive the company’s stock price. When the stock price rises, investors are happy, and the CEO keeps their job. When it doesn’t, pressure mounts.

That’s why, in quarterly earnings releases and conference calls, CEOs focus only on the most impactful initiatives—the projects that truly move the needle on profits. They don’t waste time on small or experimental efforts.

So, when CEOs are highlighting AI in their reports, it tells us two things:

1.     They’re already seeing meaningful results. If AI weren’t producing real gains, it wouldn’t make the cut for these investor updates.

2.     AI adoption will now accelerate. That’s how capitalism works—once investors see proof that AI cuts costs and boosts profits, they pressure every management team to push harder.

And make no mistake: investors love job cuts, because reduced payroll means higher profits. From here on, CEOs will compete to prove how effectively they can use AI to lower headcount and improve efficiency.

Meanwhile, AI technology itself is advancing at breakneck speed. Vendors are rolling out AI agents that can handle an ever-wider range of job functions. IT roles were hit first—programmers working alongside AI coding assistants are seeing massive productivity boosts. But now AI bots and agents are spreading into nearly every department of both large and small companies.

Some CEOs are already reporting thousands of jobs cut due to AI. Soon, that will grow into tens of thousands. Multiply that across thousands of companies, and the impact on unemployment could be profound.

We all knew this was coming—but I didn’t expect it to arrive so soon.

For my thoughts on where this all ends up, see my recent blog post Click here.

Stay Disciplined My Friends,

Phil

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