AI Replacing Jobs: 18 Useful Stats You Should Know

From ‎Gemini and ChatGPT to autonomous vehicles and self-aware robots, AI is one of the most intriguing and controversial developments of this century. However, this development of AI comes with substantial implications for the future of work. 

As AI progresses, it has the potential to both create and replace jobs across a broad range of industries and professions. While some roles may be augmented or improved with AI technologies, others may become obsolete or significantly altered. 

In this article, we’ve featured 18 crucial facts and statistics that highlight the intricate dynamics of AI replacing jobs. By analyzing these trends, job vulnerabilities, and industry-specific impacts, we aim to provide a comprehensive understanding of the multifaceted effects of AI on employment. 

Did you know? 

The global AI market (which was worth $150.2 billion in 2023) is expected to reach $1.3 trillion by 2030, growing at a CAGR of 36.8%. [1]

This encompasses multiple aspects like software and hardware offerings, and different technologies such as machine learning (including deep learning with models like GPT-1, 2, 3, 4) and natural language processing. 

1. Generative AI could replace 300 million full-time jobs worldwide

According to the Goldman Sachs report, if generative AI delivers on its promised capabilities, the labor market will face massive disruption.

In the US and Europe, about 66% of current jobs are exposed to some degree of AI automation, and generative AI could substitute up to 25% of current work. 

The estimates suggest that generative AI technologies (such as ChatGPT, LaMDA, and DALL-E) could expose nearly 300 million full-time jobs to automation. [2]

2. AI will replace 2.4 million US jobs by 2030

According to a study by Forrester, a research and advisory firm, generative AI is anticipated to replace approximately 2.4 million job positions in the United States by 2030, with an additional 11 million roles being significantly impacted. [3]

The major disruption will be felt by middle-class employees with college degrees. Interestingly, individuals earning annual salaries below $60,000 are projected to be less affected by generative AI compared to those earning $90,000 or more.

3. 60% of business owners believe AI will drive sales growth  

Source: Forbes Advisor 

According to a survey conducted by Forbes, 64% of business owners believe that AI will boost productivity and enhance customer relationships. Plus, 60% anticipate AI to drive sales growth, and 59% expect it to lead to cost savings. [4]

About 44% of businesses perceive AI as an asset for improving decision-making, while 53% think it could help them avoid mistakes. 

4. 64% of businesses believe AI will not affect their website traffic from search engines

Despite these optimistic views, some business owners express concerns about AI’s impact on website traffic from search engines. Approximately 24% of respondents fear that AI could affect their business’s visibility on search engines. [4]

Moreover, 43% of business owners express concerns about becoming overly dependent on AI, while 28% are anxious about the possibility of bias errors in AI systems.

5. The sector most affected by AI will be “Office & administrative support”

According to MSCI Inc., an American financial service provider, the “office and administrative support” sector will be the most affected by AI-driven automation, with 46% of US employment exposed to AI in this field. AI could significantly impact common tasks like data entry, document management, and scheduling meetings. [5]

Following closely behind is the “legal” sector, with an estimated impact of 44%. AI is likely to automate legal processes such as contract analysis and may even be utilized to predict court case outcomes.

As expected, jobs in mining, manufacturing, and agriculture are the least exposed to generative AI. 

6. “Nurse practitioners” are considered AI-proof jobs with the highest projected growth by 2032

While there are several jobs that may not be significantly affected by the AI wave, nurse practitioners are projected to have the highest growth rate.

Their jobs are estimated to grow by 45% over the next decade, with about 118,000 nurse practitioners entering the workforce from 2022 to 2032. According to Indeed, their average salary in the United States is $125,659 per year. [6]

7. Female workers have higher levels of exposure to AI

Approximately 21% of women and 17% of men are expected to have the highest exposure to AI automation. This is due to the different types of jobs held by each gender. [7]

Asian employees (24%) and White employees (20%) have higher exposure compared to Black employees (15%) and Hispanic employees (13%).

8. About 11.8 million US workers may need to switch jobs by 2030

Between now and 2030, nearly 11.8 million employees will need to change jobs, not out of choice but necessity. Approximately 9 million of them might need to transition into new industries altogether.

A study by the McKinsey Global Institute indicates that up to 30% of hours worked today could be automated by 2030. [8]

9. Over 50% of employees will require significant upskilling or reskilling

According to the report by the Organization for Economic Cooperation and Development, new technology, particularly AI and machine learning, will transform 1.1 billion jobs over the next 10 years. [9]

As technology advances rapidly, it’s crucial for companies to invest in upskilling and retraining their workforce. By adequately training their employees and preparing them for upcoming changes, companies can prevent layoffs and maintain morale and productivity among those who remain. [10]

An MIT study reveals that employees using ChatGPT experienced a 37% increase in productivity. Therefore, it’s advantageous to embrace and utilize AI rather than ignoring it. [11]

10. AI investment will reach 200 billion globally by 2025 

According to Goldman Sachs Research, AI-related investment could reach $100 billion in the United States and $200 billion worldwide by 2025. Over the longer term, these investments could peak as high as 4% of GDP in the US and 2% of GDP in other major AI leaders like China. [12]

However, despite the rapid growth of AI, the near-term impact on GDP is expected to be relatively modest because AI-related investment currently accounts for a very small share of US and global GDP.

11. Financial institutions will double their spending on AI by 2027

The increased investment in AI from financial and other companies highlights their shifting priorities.

According to International Data Corp, sales of hardware and software services will exceed $400 billion by 2027. Spending in the financial sector is expected to more than double to $97 billion by 2027, with a CAGR of 29%. [13]

Amundi SA, the largest asset management company in Europe, is developing its own AI system for macroeconomic analysis and market research. Plus, several hedge funds have started utilizing generative AI. About 50% of them use ChatGPT professionally, while 66% use it for tasks such as writing marketing text or summarizing reports. [14]

Similarly, The European Central Bank employs AI to automate the classification of data from 10 million business and government entities. [15]

12. AI could accelerate global GDP growth by up to 14% by 2030

PwC research report suggests that AI could contribute up to $15.7 trillion to the global economy by 2030, which is more than the current output of China and India combined. Of this, $9.1 trillion is likely to come from consumption side effects and $6.6 trillion from increased productivity. [16]

The research also indicates that 45% of the total economic gains will come from product enhancement, which will stimulate consumer demand. This is because AI will broaden product choices while increasing personalization and affordability over time. 

13. China is expected to see the biggest economic gains with AI enhancing GDP by 26%

Around 26% of the economic gains from AI will occur in China, with another 14.5% in North America, totaling $10.7 trillion and representing nearly 70% of the global economic impact. [16]

Northern Europe, Southern Europe, and Developed Asia will also experience significant economic gains, accounting for 9.9% of GDP ($1.8 trillion), 11.5% of GDP ($0.7 trillion), and 10.4% of GDP ($0.9 trillion), respectively.

14. 75% of employees are concerned about AI

An astonishing 75% of workers are worried that AI might make some jobs disappear. Even more concerning, 65% express anxiety about AI potentially replacing their current job. [17]

Employees are mainly concerned about how AI might affect their finances and career growth, including worries about: 

  • Decreased pay or salary  (72%)
  • Missing out on promotions because of a lack of AI skills (67%)
  • Falling behind professionally if they don’t utilize AI at work (66%)

Many employees feel anxious because their leaders haven’t offered clear guidance on using AI responsibly. About 65% of workers have expressed concerns about not knowing how to use AI ethically.

15. AI and Automation have caused a 50% to 70% decrease in wages since 1980

The middle and working classes in the United States have seen a steady decline in their fortunes. A report from the National Bureau of Economic Research suggests that AI, robotics, and other advanced tools have widened the gap between the wealthy and the rest, creating significant income inequality. 

According to the research, 50% to 70% of changes (decline) in the US wage structure have resulted from companies automating tasks previously performed by humans. Examples include industrial robots taking over jobs from blue-collar workers in manufacturing and specialized software replacing clerical positions. [18]

This trend seems poised to continue accelerating and it has the potential to impact workers across all classes.  

16. The skills gap is the main obstacle to adopting AI technology 

According to a survey conducted by IBM, the top five factors that hinder successful AI adoption in large companies are:

Limited AI skills and expertise (33%)
Too much data complexity (25%)
Ethical concerns (23%)
Complexity of integrating and scaling AI projects (22%)
Lack of tools for developing AI models (21%).

Moreover, many IT professionals, 57% for data privacy and 43% for trust and transparency, believe that these issues are the major obstacles to adopting generative AI. [19]

17. Most companies have accelerated their investments and rollout of AI in the last two years 

According to the IBM global AI adoption index, 59% of IT professionals (in surveyed companies) are either exploring or deploying AI models, indicating accelerated rollout and investment in AI systems by their companies. [19]

Businesses in China, India, and the UAE are the most likely to be accelerating AI rollout, whereas the UK, Canada, and Australia are the least likely.

The majority of these businesses are investing in research and development (44%) and reskilling/workforce development (39%). 

18. There are over 70,700 AI companies worldwide 

As per the latest report, there are 70,700+ AI companies across the world. These companies develop core infrastructure (AI algorithms and AI-specific processors), intermediate solutions such as natural language processing, autonomous system enablers, and AI-powered apps for automation, data analytics, recommendations, and more.

Of these 70,700+ companies, about 22,100 have received funding. Nearly 5,000 have reached Series A funding or beyond, while 881 have reached Series C or beyond. Among them, 339 have achieved unicorn status. [20]

Palo Alto Networks, Notion, Matterport, Fortniet, Samsara, CrowdStrike, and Stripe are some of the most popular examples. 

Read More

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Sources Cited and Additional References

  1. AI Market, Artificial Intelligence market by offering, technology, business function, vertical, and region – global forecast to 2030, Markets and Markets
  2. Global Economics Analyst, The potentially large effects of AI on economic growth (Briggs/Kodnani), Goldman Sachs
  3. J. P. Gownder, 2023 generative AI jobs impact forecast, Forrester
  4. Katherine Haan, How businesses are using AI in 2024, Forbes
  5. Marcus Lu, Ranking industries by their potential for AI automation, Visual Capitalist
  6. Careers, Top 65 jobs safest from AI & robot automation, U.S. Career Institute
  7. Rakesh Kochhar, Which US workers are more exposed to AI on their jobs, Pew Research Center
  8. Kweilin Ellingrud, Generative AI and the future of work in America, McKinsey Global Institute
  9. The Reskilling Revolution, Transforming education, skills and learning to empower 1 billion people for tomorrow, World Economic Forum
  10. Information Systems Frontiers, Reskilling and upskilling the future-ready workforce for Industry 4.0 and beyond, Springer Nature
  11. Shakked Noy, Experimental evidence on the productivity effects of generative AI, MIT
  12. Outlooks, AI investment forecast to approach $200 billion globally by 2025, Goldman Sachs
  13. Jeff Kearns, AI’s Reverberations Across Finance, International Monetary Fund 
  14. Lauren Ebert, The rise of AI assistants: Hedge fund managers and ChatGPT, BNP Paribas’ Global Market
  15. Myriam Moufakkir, Careful embrace: AI and the ECB, European Central Bank
  16. Sizing the prize, Global AI study: Exploiting the AI revolution, PwC
  17. EY, Research reveals the majority of US employees feel AI anxiety amid explosive adoption, PR Newswire
  18. Daron Acemoglu, Tasks, automation, and the rise in US wage inequality, National Bureau of Economic Research
  19. Sarah Benchaita, IBM Global AI Adoption Index 2023, IBM Newsroom
  20. Sector overview, Key statistics and Market map of AI, Tracxn
Written by
Varun Kumar

I am a professional technology and business research analyst with more than a decade of experience in the field. My main areas of expertise include software technologies, business strategies, competitive analysis, and staying up-to-date with market trends.

I hold a Master's degree in computer science from GGSIPU University. If you'd like to learn more about my latest projects and insights, please don't hesitate to reach out to me via email at [email protected].

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