AI Could Eat 7.5 million Data Entry Jobs by 2027

The impact of artificial intelligence (AI) on the job market is a growing concern, with numerous reports highlighting instances where individuals have lost their jobs due to AI advancements. Here are some key statistics and notable cases that illustrate this trend.

Job Loss Statistics Linked to AI

1. Overall Job Displacement: Approximately 14% of workers have reported experiencing job displacement due to AI, reflecting a significant but somewhat restrained impact compared to earlier predictions that suggested widespread job loss.

2. Recent Job Cuts: In May 2023 alone, 3,900 jobs in the United States were directly attributed to AI, marking it as the seventh-largest contributor to job losses that month. This accounted for about 5% of all job losses during that period.

3. Corporate Perspectives: A survey conducted by PwC revealed that 44% of companies utilizing or planning to implement AI foresee layoffs in 2024. This indicates a growing expectation among business leaders that AI will lead to workforce reductions.

4. Sector-Specific Impacts: The sectors most vulnerable to AI-driven job losses include data entry, administrative roles, and certain manufacturing positions. For instance, it is estimated that over 7.5 million data entry jobs could be lost by 2027 due to automation technologies.

   
   
   
   

Notable Cases of Job Losses Due to AI

• Google Layoffs: In early 2024, Google announced layoffs affecting over 1,000 employees, particularly in departments like voice assistance and hardware. This restructuring was partly attributed to the integration of AI tools within the company.

• British Telecom (BT): The telecommunications giant has plans to reduce its workforce by 10,000 employees over the next seven years, primarily through the adoption of AI and automation technologies.

• Paytm Layoffs: The Indian digital payments company Paytm confirmed layoffs affecting about 1,000 workers, indicating that AI-led automation would replace certain roles within the organization.

Broader Implications

The International Monetary Fund (IMF) projects that up to 40% of jobs worldwide could be impacted by AI, with advanced economies facing even greater risks—up to 60% of jobs may be affected. While some jobs may benefit from AI integration, others could see reduced demand or complete elimination.

Moreover, a significant portion of the workforce is concerned about job security; about 24% of workers express worries that AI could render their roles obsolete in the near future.

The integration of AI into various industries is already leading to tangible job losses and reshaping the employment landscape. While some sectors are adapting and creating new opportunities, others are experiencing significant reductions in workforce size. As companies increasingly adopt AI technologies, ongoing monitoring and proactive measures will be essential to mitigate the adverse effects on employment and support affected workers through retraining and reskilling initiatives.