The business world is grappling with AI-driven workforce changes as companies balance job cuts with new opportunities. Business Insider made headlines this week by laying off 21% of its staff while announcing heavy investment in AI systems. This “brazen pivot” reflects a growing trend where businesses replace certain roles with agentic AI tools that can automate tasks like writing and data analysis.

Anthropic CEO Dario Amodei sparked debate by predicting AI could eliminate 50% of entry-level white-collar jobs within five years. While economists question this timeline, nearly half of companies globally plan to move workers from disrupted roles to new positions. IBM’s CEO shared a mixed example – while AI created new jobs at the company, many are based in lower-cost countries like India rather than where layoffs occurred.

In the United States, Michigan unveiled an ambitious AI and Workforce Plan aiming to create 130,000 jobs and retrain workers for AI-augmented roles. The state projects 2.8 million jobs will be transformed by AI in the next decade, emphasizing construction, healthcare, and manufacturing roles that combine human skills with AI tools.

The World Economic Forum reported 40% of employers plan workforce reductions where AI can automate tasks, while predicting AI will create 11 million new jobs globally – though these often require different skills. This shift particularly impacts Gen Z workers, with 49% feeling their education is less valuable as AI changes hiring needs. Companies are increasingly looking to countries like India for AI-skilled workers, creating intense global competition for white-collar roles.

Workers face a skills transformation challenge – 39% of current abilities may become outdated by 2030, requiring retraining in AI collaboration and technical skills. While some companies like IBM show workforce growth through AI adoption, the geographic distribution of new jobs raises concerns about economic fairness. Experts emphasize that successful AI integration requires not just technology, but building employee trust – cited as the biggest current barrier to business AI adoption.

As agentic AI systems become more capable, businesses face tough choices between workforce reductions, retraining programs, and global hiring strategies. The coming years will test whether companies can balance efficiency gains from AI with maintaining opportunities for workers worldwide.