Workforce Impact (from employee side) Weekly AI News
July 21 - July 29, 2025This week, AI's impact on workers revealed a mix of challenges and opportunities. Tech layoffs surged as companies like Microsoft cut jobs while investing in AI, but non-tech roles with AI skills saw salaries jump by $18,000 annually. Workers increasingly use AI tools without telling bosses, with 45% of employees adopting AI covertly—especially Gen Z and tech workers. Skill inflation rose as 25% exaggerated AI abilities during hiring, reflecting pressure to stay competitive. The U.S. government launched an AI Action Plan to boost workforce training and retraining programs, focusing on AI literacy and infrastructure jobs. Meanwhile, debates emerged about AI's productivity gains, with experts noting tools may speed tasks but not necessarily improve overall output. Compensation gaps widened, as only 17% of workers saw pay raises tied to AI performance despite company ROI.