Daniel Mercer
A recent study reveals that nearly all CEOs anticipate layoffs driven by corporate AI initiatives within the next two years.
The Global Talent Trends report from the consulting firm Mercer indicates that an astonishing 99% of CEOs are bracing for AI-related job cuts in the near future. The report highlights that while many executives believe that redesigning roles to integrate automation will yield significant returns on investment, only 32% feel confident that the workforce can effectively merge human and machine capabilities.
Businesses are rapidly embracing artificial intelligence as a powerful tool for maximizing profits. Over the past year, numerous companies, particularly in Silicon Valley, have claimed that their AI projects are performing so well that they justify substantial layoffs. Despite executives and investors openly discussing their expectations for a looming AI-driven wave of white-collar unemployment, experts remain divided on whether these commitments truly lead to meaningful productivity improvements. Some even argue that the AI industry’s emphasis on workforce disruption is merely a strategic ploy to market its products.
Young workers are expected to bear the brunt of these changes. Another recent survey indicates that the anticipated AI-induced job reductions will primarily target early-career positions. The rationale is simple: AI excels at automating routine tasks typically assigned to entry-level employees, who are still acquiring the skills needed for advancement. many executives, captivated by the efficiency of AI chatbots that can complete tasks in seconds and operate around the clock without breaks, seem indifferent to the fate of early-career workers and the crucial training necessary for the workforce’s future.
This impact is not merely a prediction; it has already manifested. Recent studies show that the job market for individuals aged 22 to 27 is experiencing its most challenging phase since the peak of the pandemic, leaving many young people feeling disillusioned about AI and their prospects. A recent report found that the engagement of Gen Z with AI is plateauing, with increasing numbers expressing feelings of anxiety and frustration regarding the technology.
This skepticism about AI is also affecting older generations. An NBC News poll conducted in March revealed that AI is so unpopular among voters that even the Immigration and Customs Enforcement Agency (ICE) — an agency often criticized for its controversial actions — received a relatively more favorable perception.
Regardless of whether the wave of layoffs can be justified by AI’s productivity enhancements, the way executives promote this technology at the expense of their workforce has significant repercussions. According to Mercer’s survey, only 44% of employees reported feeling fulfilled at work in 2026, a decline from 66% in 2024, with anxiety over potential job displacement attributed to AI as a major factor. This existential distress and pervasive anxiety are so widespread that researchers are suggesting the term “AI Replacement Dysfunction” or AIRD to describe it.
