AI and (Un)Employment
We have all read various reports about artificial intelligence’s impact on our daily lives: how its evolution might bring about a utopia, how it has the potential to become sentient and destroy humanity—and, closer to home, its potential impact on the job market that most Americans rely on for their living standards.
A recent report by the Goldman Sachs brokerage firm’s research department said that over the last four years, AI automation has led to a slowdown in job growth, particularly in information and communication services. The category includes call centers (down 39% in the U.S.), software publishing (160,000 tech layoffs so far in 2026), management consulting and advertising.
Meanwhile, entry-level workers are being hit hardest by rising AI adoption. According to a report issued by MIT, AI-exposed occupations have experienced a 13% decline in employment of workers age 22-25. After analyzing job postings across 285,000 firms, the researchers found that the demand for entry-level positions has shifted to a long-term decline, and the focus has shifted to hiring more experienced staffers.
Interestingly, however, a report in The Deep View tech website found that AI has become a scapegoat for companies that want to trim headcount without triggering a backlash among their workers. However, blaming layoffs on AI has created unexpected friction around internal AI deployments.
Most Americans are not aware of the employment undercurrents so far, but on some level they have acquired a deep unease about how AI might affect their lives and standard of living. A 2026 survey found that 52% of Americans say they are more concerned than excited about the increased corporate use of AI, compared with just 37% in 2021. That includes 55% of young adults, who have traditionally been the most open to change around new tech features.
The unanswered question about these statistics relates to future AI adoption. If people are skeptical or actively opposed to a new technology, will it get a chance to become ubiquitous like, say, social media or the web? Companies may face a challenge getting Generation Z onboard with using AI tools for everyday tasks if they also believe it is the reason their jobs will be replaced—which could reduce the often-promised productivity gains that the large data centers were built to deliver.
This article was written by an independent writer for Brewster Financial Planning LLC and is not intended as individualized legal or investment advice.