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Generative AI Set to Disrupt Entry-Level and Knowledge Economy Jobs

Robust training initiatives with social safety nets are essential to prevent deepening inequality among workers displaced by AI.

SHANGHAI, CHINA - JULY 26: Humanoid robots Qinglong sort goods at the logistics sorting line during the exhibition of 2025 World Artificial Intelligence Conference (WAIC2025) at the Shanghai World Expo Exhibition and Convention Center on July 26, 2025 in Shanghai, China. Under the theme "Global Solidarity in the AI Era," the annual three-day conference, running from Saturday to Monday, has attracted over 800 Chinese and international exhibitors, showcasing more than 3,000 exhibits - a record high, including 40 large language models, 50 AI-powered devices, and 60 intelligent robots, according to the organizer. (Photo by Tian Yuhao/China News Service/VCG via Getty Images)
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Photo: Brian A Jackson (Shutterstock)
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Overview

  • Researchers at Anthropic found AI was automating or augmenting about a quarter of daily job tasks by late 2024, with automation linked to lower wages and augmentation boosting pay and creating new roles.
  • Experts from Brock University and other institutions warn that generative AI threatens entry-level customer service positions and knowledge-economy roles in communications, education and journalism, disproportionately affecting younger and less-educated workers.
  • Major companies including IBM have deployed AI to replace hundreds of HR staff, and Microsoft and Google report that AI now writes over 25 percent of new code in development workflows.
  • Pilot programs such as Magna International’s self-driving delivery robots in Toronto illustrate AI’s swift expansion into logistics and other operational tasks.
  • Policymakers and industry leaders are calling for targeted upskilling programs, clear regulatory guidelines and expanded social safety nets to address widening skill gaps and inequality.