AI agents are not ready to replace workers right now, according to news from this week. Andrej Karpathy, who helped start OpenAI, one of the biggest artificial intelligence companies in the world, said that AI agents have too many problems. An AI agent is a computer program that can do work tasks on its own, like answering customer emails or helping people with problems.

Karpathy explained that these AI agents "don't work" and "don't have enough intelligence" to do real jobs. He said they are "cognitively lacking," which means they don't think well enough yet. The AI agents also can't do many tasks at once, can't learn new information, and can't use computers like humans do. Karpathy said it will take about ten more years before these problems are fixed. He compared using AI agents to hiring an intern who still needs lots of help from a person.

Because of these problems, many companies are changing their plans. Half of all companies that wanted to cut their customer service workers by the year 2027 are now giving up on those plans. This is good news for workers who were worried about losing their jobs. Some companies tried using AI agents in test projects, but 95% of these test projects failed. However, some companies are still trying to use AI to cut jobs. A company called LimeChat in India says it will cut 80% of its customer service workers and replace them with AI agents.

Some companies are finding ways to use AI agents to help workers instead of replacing them. McKinsey, a big business company, built an AI agent that reads emails about new projects. This AI agent cuts the time needed to review projects from 20 days down to just 2 days. But a human still has to check what the AI agent does to make sure it's right.

Young people are struggling to find jobs in the United States, and AI is part of the problem. College graduates in 2024 and 2025 are having one of the hardest times finding jobs. The unemployment rate for recent college graduates was 4.8% in June 2025, which is higher than the rate for all workers. One recent graduate named Aspen Bailey sent out more than 1,400 job applications for jobs in computer science and psychology. Only about 50 companies even wanted to talk to her about a job—that's less than 1%.

About one in four young adults said they can't find jobs in the fields they studied for. Many of these young people studied things like computer science, which used to be a job field with lots of openings. But now, even though companies need to use more AI, they are not hiring many people for these jobs.

The business world is worried about the future. A global organization called the World Economic Forum says that AI and information technology will cause 9 million jobs to disappear around the world between now and 2030. However, other jobs will be created too. For example, companies will need more software developers and engineers. The Bank of America says that software developer jobs could grow by almost 18% by 2033.

White-collar jobs—the kind people do in offices using computers—might change the most. In fields like finance and professional services, AI could help workers do their jobs faster and better. But some jobs like legal assistants and credit analysts might have fewer openings because AI can do some of that work. The challenge for businesses is to figure out how to use AI to help workers instead of getting rid of workers.

Weekly Highlights