AI Systems and Agents Are Taking Jobs, Not Your Coworker Using ChatGPT, Here is the Proof.

Evangel Oputa
May 31
3 min read

“AI won’t take your job, the people using AI will…”Errrr… wrong. They spoke too soon and did not account for AI Systems and Agents.

The narrative is old. The real threat to jobs in 2025 is not someone “using AI.” It’s AI agents doing the job outright faster, cheaper, and at scale.

The Reality as of May 2025:

1. The Narrative “AI won’t take your job; someone using AI will”

The narrative that “AI won’t take your job; someone using AI will” no longer holds true. AI itself is directly displacing jobs across various sectors, with significant impacts on entry-level and white-collar positions.

According to the World Economic Forum’s Future of Jobs Report 2025, 40% of companies expect to reduce their workforce due to AI and automation.

WEF

2. Direct Job Displacement

AI is automating tasks traditionally performed by humans. For instance, AI systems are now capable of handling basic programming functions, leading to a reduction in entry-level tech positions.

Wall Street Journal reports: Entry-level tech jobs are disappearing as AI tools increasingly take over routine tasks.

WSJ

3. Hiring Freezes and Layoffs:

Major companies across industries, including Meta, UPS, and Morgan Stanley, have implemented layoffs attributed to AI integration and automation.

Business Insider

AI-Driven Layoffs

Microsoft

Employees Laid Off: Approximately 6,000 (about 3% of global workforce)
Reason: Organizational restructuring to align with AI initiatives and streamline operations.
Source: Times of India

IBM

Employees Laid Off: Several hundred in Human Resources
Reason: Automation of HR functions using AI technologies.
Source: Economic Times

Chegg

Employees Laid Off: Approximately 248 (22% of workforce)
Reason: Decline in user base due to competition from AI-powered educational tools.
Source: NYPost

Autodesk

Employees Laid Off: Approximately 1,350 (9% of global workforce)
Reason: Restructuring to focus on AI and platform development.
Source: SF Chronicle

and many more

Dell
Workday
Meta Platforms
Google
Unity Technologies

These layoffs reflect a broader trend of companies leveraging AI to automate tasks, leading to workforce reductions in various sectors. The integration of AI technologies is reshaping job roles and necessitating a shift in workforce skills to adapt to the evolving landscape.

4. AI in HR

Approximately 30% of companies are utilizing AI-driven hiring tools, which can inadvertently disadvantage certain groups, such as individuals with employment gaps or non-native English speakers

News.com.au

As we look to the future, we see immense potential for AI agents in HR. When we recently made the shift to agentic AI with our newest release of AskHR on IBM watsonx Orchestrate, for example, it was an exciting day for our team! There is so much more we can do with the employee experience now that we have agentic AI capabilities. - IBM

In the last four years, we have seen a 40% reduction in the HR operating budget. In 2024 alone, AskHR successfully handled more than 11.5 million interactions and completed over one million transactions. This increased our productivity and saved both managers and employees precious time in their day, time that they now spend on higher-value work. Our HR team is proud that our Client Zero work contributed to the USD 3.5 billion in productivity savings (against a USD 2 billion target) that IBM realized in 2024 - IBM

Klarna's reversing its decision

There has been some mistakes along the way

Swedish fintech company Klarna is reversing its decision to replace human employees with AI after facing declining service quality. After laying off around 700 workers and heavily investing in AI for customer service and marketing tasks, the company has acknowledged that cost-cutting was prioritized over quality. CEO Sebastian Siemiatkowski admitted the AI agents failed to meet expectations, prompting Klarna to begin rehiring human workers, particularly for remote customer support roles.