By Dr Samar Verma*
AI Transforms 40% Jobs: Adapt Now
Every major technological change brings up the same question: is this just another trend, like the wheel or the internet, or a significant shift in civilisation? Artificial intelligence (AI), especially generative AI, is making us reconsider this question amid ongoing changes.
Concerns are valid: will AI reduce skill levels, eliminate entry-level jobs, and increase inequality? There is also optimism: can it boost productivity, open new fields, and make expertise more accessible? The evidence now shows that AI is neither simply a job destroyer nor a harmless tool. It is a powerful “task-reshaper” arriving quickly and broadly, with 2026 expected to be a crucial year for how societies adapt to it.
How Big Is the Disruption?
Recent labour market projections help distinguish between panic and real change. The World Economic Forum (WEF)’s Future of Jobs Report 2025, based on over 1,000 major employers representing more than 14 million workers, estimates that by 2030, trends in technology and green transitions will create about 170 million new jobs while displacing 92 million. This results in a net gain of 78 million roles, affecting roughly 22% of current jobs. About two in five employers anticipate reducing parts of their workforce where AI can automate tasks.
The Organisation for Economic Co-operation and Development (OECD)’s Employment Outlook finds that, on average across member countries, about 27 to 28% of jobs are at high risk of automation, which includes a high share of tasks that can be easily automated. However, it also notes no clear evidence of a decline in overall labour demand; rather, tasks within jobs are changing.
The International Labour Organization (ILO)’s analysis of generative AI reaches a similar conclusion: the primary effect will likely be to enhance jobs rather than replace them. Clerical and administrative workers are most exposed, while many other jobs will see AI changing their task mixes instead of eliminating entire roles.
The International Monetary Fund (IMF) offers a global perspective, stating that nearly 40% of jobs worldwide are expected to be affected by AI, with exposure rising to approximately 60% in advanced economies. Of those affected, roughly half could see increased productivity and wages, while the other half may face lower demand and wage pressure, potentially widening inequality.
AI appears less like a sudden disaster for jobs and more like a swiftly changing climate that will impact every sector, but with varying degrees of intensity.
Where Will the Pressure Be Felt?
The most immediate impact is on routine, information-processing tasks. Customer support, basic coding, software testing, document drafting, transcription, data entry, and various clerical roles in banking, insurance, media, and professional services are already facing significant AI encroachment. Manufacturing and logistics are also affected as AI merges with robotics and computer vision, speeding up automation on shop floors and in warehouses. In contrast, work that requires physical presence, social interaction, and context- like care, education, hospitality, and construction, is harder to fully automate, though it is increasingly organised and monitored through AI-driven platforms.
In practice, jobs evolve instead of disappearing. The more a role involves repeatable tasks, the more pressure it faces from AI. Conversely, jobs that require judgment, relationship-building, ethical considerations, and context-specific decisions are likely to see AI as a tool rather than a replacement.
The initial shocks from AI will impact wealthier countries more, where cognitive and clerical work is more common. ILO estimates suggest several percentage points of employment in high-income economies involve tasks that generative AI can automate significantly, while fewer jobs in low-income countries, which rely more on agriculture and informal work, are exposed. For many developing nations, the immediate issue is less about mass automation and more about digital exclusion. If AI becomes the main interface for finance, education, health, and public services, those lacking internet access and digital skills risk being left behind.
In formal enterprises, AI will increasingly be integrated into core systems such as human resources (HR), finance, supply chains, compliance, and customer service. In the informal sector, it first appears as apps and platforms that change how micro-entrepreneurs find customers, price their products, access credit, or learn new techniques. This can increase productivity but may also create a dependency on platform algorithms and data practices that workers cannot control.
The Skills That Will Outlast the Hype
If AI is reshaping tasks instead of simply eliminating jobs, the key question is which skills will remain valuable and which will fade away.
WEF surveys consistently identify analytical thinking and creative thinking as the most in-demand skills for the next five years. By 2030, areas like AI, big data, networks and cybersecurity, and general “technology literacy” will see rapid growth, alongside human skills such as resilience, flexibility, curiosity, and lifelong learning.
Three skill clusters stand out across various studies. The first is sense-making and judgment: the ability to frame problems, critically interpret data, and make decisions under uncertainty, including knowing when AI outputs are incomplete, biased, or incorrect. The second cluster focuses on relational and ethical skills: empathy, mentorship, negotiation, leadership, and the ability to navigate trade-offs in critical fields like health, education, finance, and public policy. The third cluster involves AI-augmented technical literacy: while not everyone needs to design models, most professionals will need to work fluently with AI tools, understanding their limitations, risks, and integration into real workflows.
For teenagers entering the job market between 2030 and 2040, this suggests T-shaped profiles: broad foundations in digital and human skills with specialisation in at least one area- law, design, climate, entrepreneurship, or public administration- where AI serves as a partner rather than a crutch.
What to Expect by 2026
While long-term forecasts capture attention, the near future has significant implications for current decisions.
By 2026, AI is likely to become a standard co-pilot for much knowledge work. In many organisations, generative AI will be embedded in office software, customer relationship tools, development environments, and call centre applications. Tasks like drafting memos, summarising reports, producing initial marketing content, and generating boilerplate code are likely to start with AI suggestions instead of a blank screen.
This will particularly impact traditional entry-level jobs. If AI systems can handle most routine information processing that junior employees once handled, companies may hire fewer new workers for such tasks. They may instead expect new hires to demonstrate higher-order skills in problem-solving, client interaction, and AI management. At the same time, new job categories will emerge, such as AI product managers, model risk officers, data stewards, AI trainers, and domain experts who convert industry knowledge into formats usable by machines. Although specialised and not mass roles, they will influence how AI is implemented.
Debates around regulation and society will shift from discussions to action. Governments and regulators are already working on AI governance frameworks covering data protection, transparency, safety, competition, and labour standards; by 2026, more of these will be in effect. Education systems will need to take clear positions on AI in classrooms, examinations, and curricula.
Without intentional policies, AI could deepen inequality. Workers with higher skills and companies that leverage AI well may see increases in productivity and wages, while others may struggle or lose their jobs- a trend highlighted by the International Monetary Fund and other organisations.
Preparing Ourselves- and the Next Generation
So, how should individuals, parents, schools, and companies respond?
First, AI should be seen as a partner in thought rather than a replacement. Over-reliance on AI tools can create a false sense of expertise, where users feel more capable while their analytical and writing skills diminish. Early experiments with AI-assisted workplaces show performance improvements when people critically evaluate and adjust AI outputs, not when they accept them without changes.
Second, continuous, modular learning must become routine. The WEF estimates that most workers will need significant retraining or upskilling by 2030, yet access to education is still uneven. Short, stackable courses in data literacy, AI usage, industry regulations, and communication can complement formal degrees and make career changes easier.
Third, young people should be encouraged to create portfolios, not just resumes. Projects like designing a chatbot for a local business, analysing air quality data in their neighbourhood, writing a policy brief on AI in education, or conducting a creative project that uses AI responsibly demonstrate the ability to apply tools meaningfully.
Fourth, public policy must keep pace with these changes. Expanding social safety nets, updating labour regulations, and funding accessible training systems- including for informal workers and small businesses- are essential. These are not just luxuries but fundamental tools for managing risk in an AI-driven labour market.
Lastly, there is a broader question of purpose. The key debate is not just about “which jobs will remain,” but about the kinds of work that societies choose to value and grow: care, education, public health, climate resilience, the arts, and community life. AI can either support these goals or divert talent from them.
The invention of the wheel and the arrival of the internet did not erase work; they changed our understanding of valuable work. AI will do the same, but more quickly and extensively. The real risk is not the absence of jobs in 2035, but that we move into an AI-driven world without investing in the skills, protections, and ethics needed to navigate it. If 2026 becomes the year we prioritise that investment- in schools, offices, and government- AI could enhance our lives instead of diminishing them.
*Dr Samar Verma, PhD, is a senior economist and public policy professional with 28 years of experience in economic policy research, international development, grant management, and philanthropic leadership. These views are personal.
