back to article One-fifth of the jobs at your company could disappear as AI automation takes off

New research suggests AI deployment is creating significant workforce redundancies across major organizations. A BearingPoint survey of 1,000 plus global execs found half report 10 to 19 percent workforce overcapacity due to "early-stage automation and limited role redesign" as AI is rolled out in their businesses. Tech …

  1. Anonymous Coward
    Anonymous Coward

    Running Schedule

    I tried to have ChatGPT to build me a running schedule this morning. Nothing stunning, prety simple stuff - a few days I can't do, a few milages I wanted to achieve, a bit of loading management. 26minutes later I gave up on ChatGPT, which was really struggling to manage this simple task and hit up Gemini instead. Gave it the basic parameters and four iterations later it still couldn't do it.

    I know AI can be really useful and I use it a LOT.

    But seriously, I'm just not that worried about it destroying jobs.

    1. theOtherJT Silver badge

      Re: Running Schedule

      You should be tho. It doesn't matter that it doesn't work, the execs who decide who to make redundant have drunk the kool-aid and are going to be making those cuts anyway.

      Sure, they might be re-hiring in a few years when it turns out that "Oh shit, we've made a terrible mistake" but I wouldn't bank on it. More likely they'll just bury their heads in the sand, and try and gas light everyone into believing that everything has always been this bad, and we all have to live with terrible service that can't answer simple questions for a few more years until the whole thing finally collapses in on itself due to being totally unaffordable and we get a colossal stock market crash leading to even more layoffs.

      This will end badly.

      1. Roland6 Silver badge

        Re: Running Schedule

        >” Sure, they might be re-hiring in a few years when it turns out that "Oh shit, we've made a terrible mistake"”

        That will happen.

        >” and try and gas light everyone into believing that everything has always been this bad”

        Not so sure about this, however, they will gaslight everyone by complaining how difficult it’s to get good staff etc. etc. at the miserly rates of pay they want to pay (lower than they are paying today) so will start another round of off-shoring to whatever country is the cheapest.

        >” This will end badly.”

        It will start going bad a lot sooner than many think…

      2. DS999 Silver badge

        Re: Running Schedule

        Companies are in business to make money, so if it causes the business to suffer those who stick their head in the sand will end up fired when they go bankrupt or get bought out by a PE firm who will install a whole new management team to turn things around.

        The ones who realize their error (or never made the error of chugging rather than sipping the AI koolaid) will be leading the successful companies that take the market share of the ones who followed the AI sirens to the grave.

        1. simonlb Silver badge

          Re: Running Schedule

          "get bought out by a PE firm who will install a whole new management team to turn things around"

          Oh, have you learned nothing? All Private Equity companies do is rearrange the management structure to extract the most value out of a newly acquired company and secure as much IP for themselves as possible while running the company down before offloading the remains a few short years later. If you have ANY involvement with an organisation which is bought by a PE outfit, get out of there as soon as possible because it's only going one way.

          1. DS999 Silver badge

            Re: Running Schedule

            That's not true, there are some PE companies that are looking for value and to operate the business profitably. Heck one could make a good argument that Berkshire Hathaway has been operating as a publicly traded combination PE firm and hedge fund for the past 65 years. I could list some pure PE funds that are like this.

            But yeah the majority are in it for the short term and it may not end well for those employed at the companies they acquire.

          2. MachDiamond Silver badge

            Re: Running Schedule

            "Oh, have you learned nothing? All Private Equity companies do is rearrange the management structure to extract the most value out of a newly acquired company and secure as much IP for themselves as possible while running the company down before offloading the remains a few short years later."

            That's what's said to be happening in Las Vegas. The casinos and hotels have sold their physical properties to investment firms and rent them back to move things around on the balance sheet. The PE firm raises the rent and the casino has to raise prices. Higher prices mean fewer guests and the cycle is loaded with positive feedback. LV used to be a great place for trade shows. Lots of entertainment the other half can enjoy while attending, cheap rooms, lots of food choices, cheap rooms, $8.95 Prime Rib Buffet, cheap rooms. I've skipped the last couple of trade shows that I normally attend there due to the high costs. Since the lock downs, the shows haven't been back up to their former glory either.

        2. David Hicklin Silver badge

          Re: Running Schedule

          Most are using the excuse of AI to cull jobs which also boosts the share price for this week

      3. MachDiamond Silver badge

        Re: Running Schedule

        "Sure, they might be re-hiring in a few years when it turns out that "Oh shit, we've made a terrible mistake" but I wouldn't bank on it."

        It could be too late by then if they damaged their brand badly enough. If their vendors can't get through to a human to resolve some sort of issue that AI has baked up, no more credit and no more shipments (or supply of services). It sucks if you don't pay for you domain name and wind up losing it or just your web site and all of your email turning off for a day. One thing I hate with Wordpress is so many functional modules are by subscription. If you miss a billing on that, your site can break and you may not realize it until somebody calls and tells you. They won't put effort into getting past your AI customer service to help you out.

        I've got this shiny new hammer. What can I whack with it?

    2. LucreLout

      Re: Running Schedule

      AI won't destroy your job when you think it can do it, it will destroy your job when a consultancy convinces a senior enough manager that it can.

      That's my first law of AI, and one definitely applicable to your last argument.

      1. Anonymous Coward
        Anonymous Coward

        Re: Running Schedule

        Exactly this. I work in automotive and I have real trouble explaining in the monthly progress and planning meetings, which my boss's boss attends, what it is that my department actually does. He just doesn't get it. At some point someone is going to argue that we can be replaced with AI and because he doesn't understand what we do he'll probably believe them and won't find out that this was a really, really bad idea until after there's some horrific accident and we get sued out of existence by someone who wants to know how no one discovered the really dangerous bug in our software that led to their loved ones dying in a crash. I really hope I mange to retire before that happens.

        1. Gort99

          Re: Running Schedule

          So I'm guessing you don't work for Tesla.

    3. Pirate Peter

      Re: Running Schedule

      we are already in the minefield of fixing projects created with VIBE coding 6 months ago and trying to fix issues or update due a customers new requirements, and its is taking 2-3 times the time it would normally

      added to that customer dissatisfaction when confronfronted with agentic AI systems trying to get simple things done with banking / insurance etc

      but C Suite execs still keep falling for the AI snake oil (koolaid) pedalled by the salesmen that knock their doors

      they won't gaslight people, they will just move on to a new company and put on their CV what a wonder job they did rolling out AI and snake oil and likely get a bonus / pay rise at the new company until found out then move on and rinse/repeat until the AI bubble finally explodes

      1. MachDiamond Silver badge

        Re: Running Schedule

        "we are already in the minefield of fixing projects created with VIBE coding 6 months ago and trying to fix issues or update due a customers new requirements, and its is taking 2-3 times the time it would normally"

        If you wind up with fewer people that are hands on with the code, there isn't the intuition to know how to make the modifications. The AI generated code might be the bee's knees, but there may be no way to fix issues and evolve it over time without tearing it all down and building something new. Doing that and maintaining backwards compatibility is going to be loads of fun.

  2. Blitheringeejit

    10 to 19 percent workforce overcapacity

    ...10 to 19 percent service enshittification...

    FTFY

    1. Jimmy2Cows Silver badge

      Re: 10 to 19 percent service enshittification

      I'd say you're being generous, and vastly underestimating the ensuing enshitification.

      1. M.V. Lipvig Silver badge

        Re: 10 to 19 percent service enshittification

        Yup, because the ones they'll keep won't be the crusty old techs who know how it all works. They'll keep the juniors who are making nothing, whose techical expertise extends to knowing how long it takes to make tea for everyone on shift.

    2. MachDiamond Silver badge

      Re: 10 to 19 percent workforce overcapacity

      If a company has a workforce overcapacity, that's a different problem and isn't going to be solved by removing 50% of the workforce and adding AI.

  3. Anonymous Coward
    Anonymous Coward

    Only fools and keyboards

    Just this week a colleague, who is trying to start a business/sideline for herself, came into my office asking for some help on her web site. She had successfully managed to use ChatGpt to create the basic site but was now facing increasing difficulty in adding the minor details and elements that would have made her site much better. But because she didn't have a clue about HTML, CSS etc ChatGPT could no longer provide useful feedback because she no longer knew which question to ask. Her frustration was extremely obvious as ChatGPT made he now feel like a fool.

    ( Her actual problem was that she had no idea what CSS was, what fluid layouts are, or even something simply as padding )

    My colleague is by no means a fool but she successfully lulled herself into believing that IT was easy.

    As I see it, when we remove the professionals we will only up end with a lot of useless idiots running around banging their heads on the wall. Company collapses will definitely ensue, as YODA once said, ChatGPT does not a company make..

    1. Roland6 Silver badge

      Re: Only fools and keyboards

      Interesting your colleague has also fully taken on-board the AI hype and decided to DIY rather than use the web site builder tools from the likes of 123, Ionos etc.

      Personally, I’ve been independently in business since 2009 and still don’t have a website…

      1. Anonymous Coward
        Anonymous Coward

        Re: Only fools and keyboards

        The only benefit sitebuilders have over AI is that they technically produce a site that technically works, if you stuff enough JATO units up the pig's backside CPU cores and RAM in the VPS and steal a bunch of client-side compute to boot.

        Have a look at the HTML source of one of them sometime.... <shiver>

      2. MachDiamond Silver badge

        Re: Only fools and keyboards

        "Personally, I’ve been independently in business since 2009 and still don’t have a website…"

        If you want to start some sort of web based business, you need to spend the time to learn how to set that up. If you have some other sort of business, like graphic design, you don't need an overly complex site. You DO need your own site as anybody that is in business with only InstaPintaTwitFace assets isn't taken seriously and it handicaps one from getting the really good work.

        There's lots of "boxed" site templates that have people that know how to set them up and make modifications. Drupal and Wordpress frameworks might be the best place to start. Something built by ChatGPT or Elon's black box is not going to have anybody that knows how to support it. I don't like potential problems that can't even be solved by throwing money at them.

        1. Roland6 Silver badge

          Re: Only fools and keyboards

          >” If you want to start some sort of web based business”

          Much depends on what you want to do and how you want to go about it.

          Friends have set up web businesses selling stuff, they got off the ground by setting an Etsy / eBay / Amazon account then worried about a website of their own once the business was up and running. The most successful one we moved from123-reg to Bluepark’s e-commerce platform just before Covid having started on eBay.

          Agree about needing a website for some opportunties and in today’s world you may actually also need the social media presence.

          1. MachDiamond Silver badge

            Re: Only fools and keyboards

            "Agree about needing a website for some opportunties and in today’s world you may actually also need the social media presence."

            That's a bit too bad about needing a social media presence. I don't and do just fine. I know people that do participate and do a bit better, but they also wind up putting in far more work for that gain. Just because you are engaging with an audience, it doesn't mean that it's your audience. I don't need random people "liking" the photographic work I do for estate agents. I need those estate agents to like what I'm doing and the range of services I provide. I have limited time and personal bandwidth so I have to allocate it to where it nets the most return. Business is business, not a social exercise. I'd rather be out in the garden than fending off trolls.

            1. Mimsey Borogove
              Pint

              Re: Only fools and keyboards

              I know people that do participate and do a bit better, but they also wind up putting in far more work for that gain.

              What? You know it's possible to make more money with your company, but you don't do everything possible to bring in every last cent? I didn't think there were any people like that left. Good on you!

          2. MachDiamond Silver badge

            Re: Only fools and keyboards

            "Friends have set up web businesses selling stuff, they got off the ground by setting an Etsy / eBay / Amazon account then worried about a website of their own once the business was up and running. "

            eBay can be a good place to start, but they are extracting an ever increasing amount of fees for what they do and the level of service is dropping. I sell this and that so eBay is a good compromise. If I were selling a steady menu of items, I'd be much better off with my own shopping site where I get to keep more of the money. I could still use the other marketplaces to attract customers and send them a coupon to visit my own site when they order something. There's a few vendors I learned of that way and if I see something I want on eBay that they have listed, I can contact them directly and usually get at least 10% off. eBay fees can be up to 20% so we split the difference. Every once in a while, I'll also buy something cheap from them on eBay and the rest of my purchases get combined so they can take advantage of the discounted shipping rates they get through eBay.

            I don't buy things through Amazon due to the huge counterfeit problems and Etsy is mainly products I'm not interested in.

    2. Brave Coward Bronze badge

      Great opportunities ahead

      Time to start a company specialising in wall resurfacing!

    3. OldGeezer
      Go

      Re: Only fools and keyboards

      "successfully lulled herself into believing that IT was easy"

      That has been going on for at least the last 25 years, and like you point out "AI" is just going to make it worse.

  4. GreyWolf

    The C-suite rides again...

    Execs whose awareness of how the company functions is "thin" (to be polite) are now getting rid of lots of employees, without actually checking that AI can actually replace them.

    We now have three studies (MIT, UK government, and Yale) all saying "no measurable benefit".

    I most sincerely hope that the blame comes home to roost in the right place. After all, the company now knows that removing those execs who recommended AI is the shortest route to significant savings...

    1. Anonymous Coward
      Anonymous Coward

      Re: The C-suite rides again...

      We now have three studies (MIT, UK government, and Yale) all saying "no measurable benefit".

      Speaking as one of the UK gov't guinea pigs, even though the published outcome was deeply unimpressive, we're pretty much under the lash to adopt AI whether we like it or not. As everybody around here knows, there's a few tasks AI does adequately and very quickly but rarely completely, and it can't be trusted. However, the politicians have nailed their colours to the mast, and apparently AI is going to transform public services, so use it we must.

      Arguably it could reduce the cost of government by about 0.01%*. When some idiot SpAd decides that something should be a government policy, heaven and earth get moved to create a business case to justify a decision often founded on prejudice and without any supporting facts (think yesterday's budget, HS2, anything to do with energy, science or technology). If we replace a few thousand policy officials with AI, and AI cooks up a completely hokey business case then it will be quicker and might be cheaper than having meat sacks do it. The policy will still be flawed, but that's irrelevant.

      * That wasn't plucked out of the air or my arse, it would be the order of magnitude saving in public spending of getting rid of about 50% of policy officials.

    2. Michael Hoffmann Silver badge

      Re: The C-suite rides again...

      " the company now knows that removing those execs who recommended AI is the shortest route to significant savings"

      It's weird that I've been seeing this argument made in several places recently, as the magic "and then it will fix itself". I just got into this argument elsewhere.

      The c-suite *is* the company. They and the board make the decisions. And the board is made up of the same cronies who are c-suiters in other companies, slurping the AI/LLM koolaid.

      They aren't going to get rid of themselves! Employees have no say, there's no unions. The LLMs, even if they *would* recommend "and now kick out the guy flying around in a personal jet", will be "trained" to conveniently *not* make such recommendations.

      And they don't care if the company goes down the drain, or its bones are gnawed on by PE, in 2 years: they will long have made use of their golden parachutes. At worst, the board finally gives in to screams of shareholders and pushes out the human disaster areas with a golden handshake instead of the 'chute.

  5. A_O_Rourke

    So glad my job is Chaos based

    By that I mean the projects I manage are not simple, linear jobs where stage 1 gets complete and then the next task opens up to another team etc etc until the project is completed.

    The jobs are utter Chaos from start to finish, every single one has the same deadline - "as soon as possible"

    Every single one has ill-defined scope and budget, each one relies on specialized knowledge of who can do what work in which countries, what networks can be used and what are the idiosyncrasies of those networks (yes, they are all documented, just that not everyone knows where they are documented!).

    What contractors could be used, who can supply specialist parts or cables, who can create new items in SAP when the part you’re trying to order doesn’t exist yet.

    Feed one of my projects to an AI and I fear there may be an explosion in some datacentre or other!

    The only AI I want is for my Ring doorbell to recognise my family and I so that it doesn’t notify me every single time I come in and out of the front door!

    1. Doctor Syntax Silver badge

      Re: So glad my job is Chaos based

      My door bell-push doesn't have that problem.

      1. Roland6 Silver badge

        Re: So glad my job is Chaos based

        My door knocker also doesn’t have that problem, also it is very good value as it came off my mothers parents house, 100+ years old and still working…

      2. vtcodger Silver badge

        Re: So glad my job is Chaos based

        "My door bell-push doesn't have that problem."

        There appear to be any number of well financed AI startups out there prepared to bestow that problem and a whole bunch of additional problems upon you. Just sign up right there on that line lad and in no time at all, your storefront operation will be the next Mitsubishi. And all it will cost you is a modest sum each month for a perpetual subscription to their invaluable service. Subscriptions are on sale this week.

  6. Mike 137 Silver badge
    FAIL

    Old McDonald had a server farm

    AI, AI -- Oh!

    "Roles centered on routine analysis, [...] transactional support"

    Both of these roles only work in the real world if they're capable of effectively identifying and addressing unexpected edge cases -- the very thing that the LLM is incapable of as it operates on statistical probabilities, and edge cases by definition have low probability.

  7. Irongut Silver badge

    Pretty sure AI is going to struggle to climb a ladder and perform safety checks on various types of equipment. I think most of the jobs at my company are safe.

    And, when it comes to IT and admin roles there is little fat to trim without cutting services used by the rest of the business.

    1. Like a badger Silver badge

      And, when it comes to IT and admin roles there is little fat to trim without cutting services used by the rest of the business.

      When did that ever stop anybody? Usually some finance beancunter* will work out that if those horrible, disruptive users have to more of the processing themselves, then the staff employed to pay invoices, expenses and payroll can be cut. It never enters the BC's head that the finance transaction processing staff usually known the systems, what they're needed to do, and pretty cheap to employ, whereas users are generally paid a lot more, don't know or care about the systems, and are remarkably inefficient at these tasks (eg creating a GRN on SAP, linking it to an invoice and a PO, trying to reconcile invoices that cover multiple POs, and/or don't actually quote the PO, and where all of these documents have different values on them). So the BCs sack a few accounting technicians, and hundreds or thousands of employees, often paid far, far more, have to wrangle with systems and processes they don't understand, with more mistakes and business cost that's far higher.

      * Not a Freudian slip or a typo.

  8. Pete 2 Silver badge

    A question of balance

    > a sharp increase in workforce overcapacity by 2028 as productivity gains accelerate,

    But that doesn't lead to redundancies. If productivity keeps pace there is no reason to cut jobs. It only needs new roles to appear. Mostly ones that contain the letters "AI" in the job description.

    1. LucreLout

      Re: A question of balance

      Productivity != Revenue.

      If you have a company of 1000 people and you manage to get an AI driven gain of 10 productivity, which is were being honest isn't unreasonable, you now have up to 100 roles that are mostly excess capacity.

      If you can grow revenue / trade by 10% then ask if well. Of you can't then the "correct" thing to do is redundancies.

      That frees up money to reinvest in the products or production processes, seeking further efficiency gains, or slows for a price reduction to grow market share.

      Maintaining cost might seem sensible but it won't when your closest competitor is cutting theirs, reducing pricing, and eating your lunch. It just won't.

      1. martinusher Silver badge

        Re: A question of balance

        Ah! The "Digging a Ditch" School of Management.

        This kind of 'by the numbers' mindset only works when there's a large enough pool of interchangeable employees that you can swap them between roles without impacting productivity. I've never actually worked at a job like that -- even the laundry where I worked (briefly) at a summer job required a general understanding of process and how to use the machines safely. I daresay there are business roles that could be eliminated by automation but in the world I've worked in the obviously redundant roles tended to be the people deciding to make others redundant.

        1. LucreLout

          Re: A question of balance

          Many jobs require minutes, hours, or perhaps even a full day of training. That's about it. There's no knowledge to retain. They very much are replaceable and expendable, and can and will be cut to reduce cost and increase competitiveness just as quickly as possible.

          You don't have to like reality, but you do have to live in it. Sorry.

  9. Anonymous Coward
    Anonymous Coward

    Half of C-Suite are creaming themselves over what they perceive as cost reduction and whatever bonus there is tied to it. The other half are beginning to realize AI is failing to give them the return on investment they were expecting, but it will be a cold day in hell before they will admit it. Trouble is, by the time it gets to the point where it can no longer be hidden, there won't be anyone left to fix the mess left behind.

    1. LucreLout

      My execs predicted, based on McKinsey BS, at 40+% efficiency gains using AI.

      I predicted that would be nonsense, and it was. We got 10%, as I'd expected.

      All they've done is so taking about 40%, as though they simply never said it, and started taking about 10%.

      There will be no falling on swords.

  10. Long John Silver Silver badge
    Pirate

    Of hand-looms, newspaper hot-metal presses, telephone switchboards, domestic servants, etc.

    'AI' technology and its applications are in a transitional state. As during the early days of other, now well established innovations, 'AIs' impact is yet to be known.

    Assuming 'AI' can substantially reduce drudgery (white and blue collar) and increase productive efficiency, there are lessons from the past to ease the transition. One such is the upheaval leading to Luddites and social disorder. Similarly, former 'Fleet Street' newspaper owners met bitter resistance when skilled, and very highly paid, hot-metal press workers were displaced. Many other transitions took place more slowly, were widely welcomed, and whilst unpleasant for some individuals they did not engender broad social upheaval.

    Unfortunately, the ethos of neoliberalism has introduced a 'divide' far more pernicious than the former 'class struggles' emanating from the 19th century. The new economic and social order is overtly predicated upon a crude misunderstanding of Darwinian Evolution in terms of 'nature red in tooth and claw' which leads to a "may the Devil take the hindmost" attitude, itself an expression of "I'm alright Jack". For example, in the UK all major political parties subscribe to a corrupted, indeed moribund, version of market-capitalism, one set to foster an 'Ayn Rand' kind of dystopia for the '99.99%'.

    Many people prospering from 'liberalisation' of the City of London, and similar elsewhere, don't grasp they are 'useful fools' for a powerful new 'elite' bearing no likeness to 'breeding', aristocracy, or pretence of betterment for all mankind. They will be discarded. Their only difference from their underlings being the longer time before their families descend into penury. That applies also to so-called 'leaders' such as Mr Blair, Mr Starmer, the Johnson creature, Le Macon, Metz, von der Leyen, and many others across the globe, but especially in Western nations.

    A potentially profound innovation like 'AI' - in the right hands capable of transforming for the better the prospects for all mankind - must be handled at societal level. That is not intended to knock genuine entrepreneurs, but neither should they be placed on pedestals. Unfortunately, other perhaps than in China, there is little chance of wisdom prevailing. The so-called 'democratic world' is saddled with the ridiculous mechanism of 'universal franchise representative democracy' which is an easily manipulated plaything for 'professional' politicians 'on the take' from their true masters. Ironically, that need not be so should modern technology (e.g. the Internet) be used to draw in the experience of intelligent and educated people endowed with probity.

    As matters stand, nobody need to fear the consequences of redundancy and poverty arising from 'AI' if it were grasped that 'AI' may offer a sensible means for re-ordering the global economy (and the distribution of income/opportunity that offers) to relieve people of tedium, and to enable a substantially greater proportion to deploy hitherto buried aptitudes.

    1. Anonymous Coward
      Anonymous Coward

      Re: Of hand-looms, newspaper hot-metal presses, telephone switchboards, domestic servants, etc.

      A_man_from_mars_1, is that you?

    2. LucreLout

      Re: Of hand-looms, newspaper hot-metal presses, telephone switchboards, domestic servants, etc.

      Well written Marxist nonsense is, unfortunately, still just Marxist nonsense.

      If ai starts to destroy jobs at scale it will also encourage entrepreneurship at scale too, this leading to employers competing for their market share against start ups quickly assemble with the help of AI, at least to working prototype stage.

      In any ai dystopia, people will simply be using it to create their own businesses and we'll be back to the days before large employers, where sells employment was the norm.

      Right now we have a society where 20% of people don't have a useful productive purpose due to lack of intelligence (source: us army recruitment hurdle for intelligence, and the bell curve for iq). AI will definitely empower some of those currently progressively being left behind.

      The societal shift, if it covers, won't be to Marxism, it will be to more capitalism. It just will.

  11. Steve Davies 3 Silver badge

    OBR Forecast is BS

    They have the nerve to state that AI will boost jobs... Perhaps in the warped mind of Starmer and Rachel from Accounts but not in the rest of us.

    We are doomed I tell ye, doomed with this lot in charge and Farage is not the answer. He'll just follow the commands of his dear leader, the Mar-a-largo cheater at Golf and sink us faster that Drumpf is doing to the USA.

    1. Like a badger Silver badge

      Re: OBR Forecast is BS

      The problem government have is that they fully recognise a lack of economic growth is central to many of the country's ills (I know this to be true, I work for a relevant government department). However, both this lot and the last have "prioritised growth" but delivered none. It matters not a jot whether Labour or Tories (or LibDems), the outcome seems to be the same.

      Which to my mind means that there is a simple dichotomy: either government don't know what actually drives economic growth and so can't enable it, or they do know what drives economic growth but won't make the necessary choices.

      1. MachDiamond Silver badge

        Re: OBR Forecast is BS

        "The problem government have is that they fully recognise a lack of economic growth is central to many of the country's ills"

        I disagree. It's a loss of economic activity that's an issue, not growth. Base your plans on infinite growth and you will hit a wall. One of human kind's problems is a desire to tell others what to do. A government is the pinnacle of that sort of thing as they have to be heeded, or else. The problem there is their having no talent or training to know how to create an environment that fosters a solid economy. Their talent is being good enough at marketing themselves and playing politics to get to and stay in office.

        About the only thing government is good at is getting in the way. If you have some works you need a spanner lodged in, that's who you call.

  12. Apprentice Human

    Little evidence of jobs being lost?

    Both my wife and I have taken early retirement due to our teams being decimated or eliminated due to the AI craze.

    I can say the results I see from Amazon searches are going downhill.

    Managerial confidence on the results of AI are currently not based on results seen in reality resulting in massive lost of institutional knowledge.

    1. Anonymous Coward
      Anonymous Coward

      Re: Little evidence of jobs being lost?

      A simple search for something like "Amazon AI job losses" will give you answers

      This:- https://www.forbes.com/sites/annkowalsmith/2025/10/31/ai-didnt-layoff-14000-people-amazon-did/

      tells a story where AI is being used to hide the real job losses in Amazon, MS etc but that excuse will soon become redundant.

      Not every company is at PR wise as Amazon. They'll see the headlines and jump on the bandwagon and fire half the workforce. Then they'll watch their business go down the pan.

      Ask this question in 12 months and the answer will be clear.

      If Peter Theil can sell all his AI holdings then you know that something is very wrong.

      https://wlockett.medium.com/peter-thiel-just-revealed-how-utterly-screwed-the-entire-ai-industry-is-df7a6e4d5d60

      touch AI (like Bitcoin) and unless you are a billionaire, you will get burnt.

  13. Matt 52
    Devil

    Thank goodness for that - I work in a sewage farm!

    (no not really)

    1. Like a badger Silver badge

      Re: Thank goodness for that - I work in a sewage farm!

      A long, long time ago i worked for an organisation that ran waste water treatment plants, and those manual jobs were the first to disappear as crude automation and SCADA displaced men with rakes and hammers, You did need to be a special sort of person to spend your life clearing the inlet screens.....

  14. Boris the Cockroach Silver badge
    Unhappy

    25% losing jobs

    Hmmm that will make the unemployment figures spike up a bit.... .

    Then when the dust settles on the new world and the likes of bezos et al are all even richer while 30% of us scrabble for left overs and last nights re-heated pottage, then taxes will go up. to pay for the guards to the rich areas to stop us masses coming in and doing a french revolution on them.

    Seriously though... our economy depends of people spending money.. if they have no money how will the economy work? and for those left after the AI cull, will they be sharing in the rewards of that extra productivity? or putting up with even more pressure as they try to juggle the AI and do 2 other people's work while the rewards are all skimmed off upwards.

    1. LucreLout

      Re: 25% losing jobs

      Assuming the basic premise of your argument holds, large scale job reduction, then most people will go self employed, they won't sit at home rotting on welfare.

      To forsee that you'd have to believe in the lump of labour fallacy, which is, well, a fallacy.

      1. MachDiamond Silver badge

        Re: 25% losing jobs

        "Assuming the basic premise of your argument holds, large scale job reduction, then most people will go self employed, they won't sit at home rotting on welfare."

        If you get some form of assistance in the US, it often opens the door to qualify for more. Free digs, food, phone, car/petrol and money for essentials. Have a couple of more kids (out of wedlock as single moms get more and don't have to work) and the check gets larger. I notice plenty of people on the dole that drive a nicer car than I do and are lined up at the seafood counter buying crab legs and lobster. Even mince is rather dear these days for me so I eat a lot more chicken and buy it when it's on offer to stock up my chest freezer. I could afford more beef, but the prices have gone up so much that it triggers my Scottish blood.

  15. T. F. M. Reader

    In other news...

    El Reg's weekly WHO, ME? feature will be written by AI from now on.

  16. M.V. Lipvig Silver badge

    Ugh

    I sure am glad I'm about to leave the rat race.

  17. Anonymous Coward
    Anonymous Coward

    I work in a team of mostly ancients.

    Most of us are retiring soon - some officially, and some - those with second wives, or kids so addled by over-usage of phones that they can seemingly never survive on they own - are “quiet quitting” with force.

    But the three thirty-somethings we have just love AI; and they’re all pretty rotten coders, so being amongst them feels like owning a small flock of turkeys who are enthused about carving knives. Every time they use Copilot to generate awful code, and they don’t realise what they’ve done, and it goes live and fails badly, they’re proving how pointless they are.

    One of them is going to be sacked on Monday. I know this for sure, because I’ll be the one sacking them. It’ll be sold as an efficiency gain, and it will be.

    But not because of AI.

    1. LucreLout

      Well, it sort of is because of AI. It's just that the efficiency gains will be you not fixing their ai slop.

  18. Wang Cores Silver badge

    Again I genuinely believe the big cut will be c-suite positions. The same factors that they think makes it possible to replace technical/productive positions are the exact reasons it can replace executives far more effectively.

    It's a perfect manager; no bias or personality clash to effect coordination between teams, and no need to maintain a lavish salary to "attract" some hallucination-prone executive who will run the operation into the ground buying up the real estate nearby and seize up profit-making ventures due to ego. Probably going to be a dumb "managers' strike" eventually when this dawns on them.

    1. MachDiamond Silver badge

      "Again I genuinely believe the big cut will be c-suite positions. "

      I doubt that. The point is mowing down the headcount to "save money" so there can be bigger bonus checks. Middle managers will be the big losers as their whole worth is based on headcount, so they'll be seeing the axe too.

      I've seen enough business plans that start out with a bloated management org chart and have ignored employees and the costs that go with them, such as space/tools for them to do work. A startup with a clever new product doesn't need a CFO, VP-Eng, VP-Manufacturing, separate data entry, AP, AR, HR people, hot/cold running secretaries, etc. My take has always been that non-production personnel are parasitic. Symbiotic to a limited extent, but become a cancer if left unchecked.

  19. twsm

    Or companies reduce customer base by one fifth.

  20. Anonymous Coward
    Anonymous Coward

    Part of the problem

    Could the Reg perhaps stop contributing to the seemingly never ending AI replacement hype train with ridiculous clickbait headlines like this one?

    Perhaps talking about all the other jobs supposedly on the chopping block is soothing to reporters that could, and in some cases should, be replaced by AI...

  21. Seenit

    When I see a website Customer Service and Support welcoming me with their new AI Agent my expectations plummet

  22. Delbert

    The cost

    So cut the jobs and then who can afford your product? Meanwhile the other cost of AI will be the global carbon footprint already it is calculated to exceed the electricity demand of Denmark by the end of the year it will be equal to additional countries in the EU. While we are being told to reduce our consumption -AI is a runaway train.

  23. PeterM42
    WTF?

    Microsoft's "AI" doesn't work

    Microsoft's "AI" can't even send a security code to someone trying to reset their email password, so what hope is there for anything complicated????

    1. cd Silver badge

      Re: Microsoft's "AI" doesn't work

      Gemini comes from a company that still can't adjust phone screen brightness on its own.

      They're being allowed to run self-driving cars.

  24. Anonymous Coward
    Anonymous Coward

    AI needs regulation

    AI needs regulation, much like we have regulation in the aviation/automotive industry, and also much like the Treaty on the Non-Proliferation of Nuclear Weapons.

    We've all seen how social media has created the most anxious/depressed generation ever ... and that was just based on dopamine feeds of news/images/content.

    AI is becoming way too powerful way too quickly.

    The rush to win the AI "game" prioritises speed over safety, the big companies know this, but none of them are willing to take a breath and consider what they're actually creating.

    We're not too far off RSI (recursive self improvement) and that could be the point where AI gets out of control.

    No regulation = lose/lose for 99% of the population.

  25. MashedPotato

    Used to work with a graphic designer ..

    They got laid off. Gemini is "good enough" for internal slides and presenting at conferences. Still need a human for newspaper-quality graphics. Suspect not for long.

    1. MachDiamond Silver badge

      Re: Used to work with a graphic designer ..

      "Gemini is "good enough" for internal slides and presenting at conferences."

      I'd have to agree with that for many things if those images are just window dressing. The problem is AI generated slop is hard to refine to get the exact thing you are wanting where working with a good artist can get you there. Humans also have empathy and can design things other humans can relate to. A non-designer may have a hard time coaxing the AI as they won't know why something is off. Even in a purely human workspace, when an estate agent shows me a photo they dislike, but don't know why, I pick up on the clues since I've trained and know what's nagging their hind-brain.

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