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AI Could Eliminate Half of Entry-Level White-Collar Jobs and Trigger Recession

Tech companies are expanding AI-related hiring to capitalize on surging demand for skills driven by productivity gains

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An attendee walks by a wall with a logo during an Artificial Intelligence Action Summit at the Grand Palais in Paris, Monday, Feb. 10, 2025. (AP Photo/Michel Euler)
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Palantir CEO Alex Karp at the Hill and Valley Forum in the U.S. Capitol on April 30.

Overview

  • Top AI leaders including Anthropic’s Dario Amodei and Klarna’s Sebastian Siemiatkowski warn that AI could eliminate up to half of entry-level white-collar positions within five years and trigger a recession.
  • PwC’s 2025 Global AI Jobs Barometer finds that AI-exposed roles are seeing robust job growth and wages that average 56% higher for workers with AI skills.
  • Accenture data shows UK tech vacancies have risen 21% to pre-pandemic highs alongside a 200% surge in demand for AI-skilled professionals.
  • In the UK, 58% of firms plan to allocate a fifth of their tech budgets to AI, boosting employee training to maintain competitiveness.
  • Experts urge workers to pair AI proficiency with critical soft skills such as problem solving and communication to navigate evolving workplace demands.