I had to get my car serviced a few weeks ago. So I called the local dealership to set up an appointment.
The woman who picked up the phone recognized my phone number and asked if I was calling about my 2024 Jeep Wrangler.
I said: “Yes, and I need to do the annual service.”
She replied: “Ok. Let’s get you set up. The next appointment I have is tomorrow at 11 AM. Does that work for you?”
Then the call dropped.
Undaunted, I called back hoping to get the same helpful receptionist.
And I got her. The woman answered with the exact same tone of voice, and with the exact question same question asking if I was calling about my Jeep.
That’s when I realized I was talking to an AI chat the entire time.
It was so realistic!
That interaction opened my eyes to just how far AI has come in everyday life.
And for a growing number of workers, this progress is coming at a cost.
In our last issue we checked-in on the progress of agentic AI.
One way we can measure this progress is by answering a question we’ve asked before…
Is AI coming for your job?
In mid-2025, that answer is becoming a lot harder to ignore.
Just this month, Microsoft’s Chief Commercial Officer (CCO) announced that the company had saved approximately $500 million by using AI across its call centers.
It’s an impressive display of what AI can do to enhance productivity and make businesses more profitable.
But it comes with a human cost.
Microsoft has laid off approximately 15,300 people since the beginning of 2025.
And if what we’re seeing so far this year is any indication…
AI’s real job disruption hasn’t even begun.
It’s Not Just Tech
Most of the headlines about AI-related layoffs center around Big Tech.
Microsoft isn’t the only company slashing jobs in the name of AI-driven efficiency.
According to one recent analysis, over 132,000 workers in tech have already lost their jobs in 2025.
Source:
That’s around 790 jobs per day, and many of those cuts can be directly attributed to AI adoption.
But while Big Tech might dominate the headlines, it isn’t the only sector where AI is transforming the workplace.
In fact, one of the biggest recent AI-driven workforce reductions didn’t come from a tech company at all.
It came from the federal government.
Just this week, the Office of Personnel Management (OPM) said it’s cutting nearly a third of its staff because AI is now handling much of the administrative load.
And AI is beginning to squeeze other sectors too.
A survey of business leaders last year predicted that 38% of companies using AI would replace workers with the technology in 2025.
That forecast is now playing out across the country as companies rethink how many people they actually need to stay productive.
Transportation firms are using AI to optimize routing and cut logistics roles. Insurance companies are automating claims. Financial services companies are leaning on large language models (LLMs) to replace junior analysts.
And that’s a big problem for recent graduates. Because many roles being cut today were once the first step toward building a long-term career.
According to data from the NY Fed, recent graduates in the IT sector are being hit particularly hard.
Which makes sense, considering how well AI now handles technical tasks once reserved for entry-level developers and support staff.
But AI is also reducing the need for human paralegals, customer service agents, project coordinators, admin assistants and many more positions that used to be a foot in the door for entry-level workers.
It’s shaping up to be what Axios calls a white-collar bloodbath.
Dario Amodei, the CEO of Anthropic, believes that AI could wipe out half of all entry-level white-collar jobs.
Jim Farley, the CEO of Ford, recently argued the same thing.
According to Amodei, this could spike unemployment to 10-20% in the next one to five years as employers actively choose software over people.
Understandably, many people are concerned about their employment future, whether they’re just entering the workforce or have been employed for decades.
According to Pew Research, 64% of the public thinks AI will lead to fewer jobs over the next 20 years.
I’m much more optimistic about the impact of AI on our lives. But I’m also a realist.
As I mentioned on our private members-only Strategic Fortunes PRO call earlier this week…
This could get messy.
The macro trend is that AI is making businesses more profitable.
Microsoft’s $500 million savings is one of many examples of this. And that’s great for companies. Over the next 3-5 years I believe we’ll see some crazy multiples due to profitability.
But it will continue to come at a human cost.
Here’s My Take
According to the World Economic Forum, we’re on track to lose 92 million jobs by 2030. At the same time, they say 170 million new jobs will be created.
But even if this is true, those new jobs will require a drastically new skill set.
In a memo leaked earlier this month, Microsoft made it clear to its employees that AI use is no longer optional.
I believe this kind of mandate is going to happen more often. And if you want to survive in today’s fast-changing work environment, you’re going to need to embrace AI.
Because no matter the industry, the most successful employees today are ones who use AI to improve their output.
Think of it like this…
Knowing how to use Excel didn’t make someone irreplaceable in the 1990s. But workers who could use that software to enhance their productivity became more valuable to the companies they worked for.
I believe by this time next year, knowing how to collaborate with AI will be as important as knowing how to use email or Excel.
And for new graduates, it’ll be the price of entry into the job market.
Because there’s no sugarcoating the fact that AI is displacing workers. And this trend isn’t confined to one industry or income bracket.
In fact, this might be the first time white-collar workers are more vulnerable than blue-collar ones.
That’s why the safest move right now is to stop treating AI like tomorrow’s problem and start treating it as a core job skill.
Regards,
Ian King
Chief Strategist, Banyan Hill Publishing
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