Thursday, 12 June 2025

AI and Jobs: Navigating the New Normal

 

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Download this article as a PDF to read offline and share with your network. Help others understand the current landscape and make informed decisions about their future in the AI era.

How artificial intelligence is reshaping the job market and what it means for you

Future-Proof Careers

By Kannan M - CIT 83 Chemical


Download this article as a PDF to read offline and share with your network. Help others understand the current landscape and make informed decisions about their future in the AI era.


Introduction

In recent months, the debate over AI’s impact on employment has intensified, producing starkly contrasting outlooks:

  • “AI could erode half of entry-level white-collar jobs within five years,” warned Anthropic CEO Dario Amodei in a public forum—an unsettling prospect for those beginning their careers.

  • “Rather than replacing workers, AI is an accelerator that drives new product development and creates demand for more employees,” countered Alphabet CEO Sundar Pichai in a Bloomberg interview on June 4, 2025 

  • “If robots and machines end up making almost everything, then how will ordinary people, who might not have regular jobs or steady incomes, be able to buy all those things?” -Sridhar vembu

  • “AI will not take your job. The person using AI will take your job.” This widely echoed sentiment

These contrasting views flood our feeds daily, hotter than the latest Rajinikanth or Kamal Haasan blockbuster. But what’s the real story for India’s tech professionals?

Such divergent views underscore the need for a balanced, data-driven perspective. This article, researched using AI tools and human verification, aims to cut through the noise and offer practical insights for the 600+ engineers of the CIT AA CC Alumni Association.


Embracing Change

The past few years have seen significant layoffs in the tech sector. In the U.S., over 93,000 tech jobs were cut in 2022, 191,000 in 2023, and about 95,000 in 2024, whereas overall job losses may be around 5 lakhs. In India, approximately 37,000 jobs were lost in startups since 2022, with 28,000 cuts by Indian tech firms in 2025 alone. Overall tech job losses were around 5-10% of the total work force at top firms. But is AI the sole villain?

Aspect

USA (2023–2025)

India (2023–2025)

Total Layoffs

~550,000+ ( all)

~37,000+ (startups)

Trend

Sideways/down

Sideways/steady

Rehiring

Limited data

Limited data

Outlook for Low-Level Coders

At risk, upskill needed

At risk, upskill needed

AI Adoption

Rapid

Growing

While AI’s role in automating routine tasks is undeniable, experts highlight a broader mix of factors: 

  1. Economic downturns, 

  2. Post-pandemic over-hiring corrections, 

  3. Cost-cutting measures, and 

  4. Strategic shifts toward higher-value work. 

AI is a catalyst within these trends, not the lone driver. Jobs aren’t just vanishing—they’re evolving. Many analysts agree that while AI enables automation, it acts more as a catalyst within these wider economic and strategic shifts, rather than being the sole driver of mass unemployment. Instead, it's redefining roles, demanding new skills, and emphasizing human collaboration with intelligent systems.


Growth Through Innovation

AI's impact on the job market is often framed as an evolution rather than an extinction event. While some, like Alphabet CEO Sundar Pichai, acknowledge that AI could eventually make a significant portion of a company's workforce redundant, he also emphasizes that AI will create new jobs. This aligns with historical trends where 60% of jobs existing after 1940 did not exist before, demonstrating how technology drives job evolution.


Currently, AI is not replacing coders but boosting their productivity, with over 30% of Google's code now AI-generated. This means top engineers can become 10x more productive by understanding AI and providing better instructions. AI tools are increasingly enabling more efficient code generation in less time, making the human element indispensable for guiding AI to produce valuable output.


However, challenges persist, particularly for entry-level positions. Hiring of college graduates by Big Tech has dropped by 50% since 2022, partly due to tightening budgets and advanced AI capabilities handling more routine tasks. This shift is also evident in reports that 37% of managers would choose AI over a Gen Z hire for certain tasks, underscoring the increasing importance of skills and adaptability in the workforce. Low-level coders, in particular, face risks unless they upskill, but those who adapt can thrive in this transforming landscape.


Envisioning Tomorrow

The emergence of AI is often met with both excitement and apprehension regarding its impact on the job market. However, historical parallels suggest an evolution rather than an outright extinction of jobs.


Lessons from the Past: The Computer Revolution


Just as the advent of computers sparked fears of widespread job displacement, it ultimately led to a tech boom and the creation of millions of new roles. Those who embraced computer literacy gained significant career advantages, and entire industries emerged that were dependent on computing. We are at a similar crossroads with AI; mastering AI skills early will likely open new opportunities and lead the way in emerging fields.Current Outlook for Employees


Companies are rapidly integrating AI into their core operations, automating routine tasks across various sectors. This shift particularly impacts low-level coders, as traditional coding jobs are increasingly at risk due to AI tools, such as code assistants, which reduce the demand for entry-level and repetitive coding work. To ensure job security, upskilling in AI, cloud computing, and data engineering is becoming essential.


While there's speculation about a significant impact on the Indian tech middle class if automation accelerates, it's more probable that job profiles will shift, requiring continuous upskilling. Demand for traditional roles may shrink, but new opportunities in AI and digital transformation will emerge.What You Should Do


To navigate this evolving landscape, individuals should consider the following:

  • Non-Techies:

    • Upskill digitally—learn core AI-augmented workflows.

    • Cultivate human-centric skills (communication, creativity, empathy).

    • Stay adaptable to evolving job roles and processes.

  • Software Engineers & Coders:

    • Master AI-assisted development (e.g., GitHub Copilot, ChatGPT for code).

    • Advance to higher-value functions (architecture, system design, AI integration).

    • Commit to continuous learning of new languages, frameworks, and AI trends.

    • Enhance soft skills—collaboration, problem-solving, leadership.

Industry-Specific Outlook and AI Adoption


The impact of AI on job loss due to automation varies across industries, with some sectors experiencing higher rates of AI adoption and related growth. The following table provides a general outlook:


Industry/Sector

Risk of Job Loss (Automation)

AI Adoption Rate

AI-driven Growth/Expansion Areas

Transportation & Storage

Very High

High

Autonomous vehicles, logistics optimization

Manufacturing

High

Moderate

Predictive maintenance, quality control, robotics

Wholesale & Retail

High

High

Personalized marketing, inventory automation

Admin & Support

Moderate

Low

Process automation, virtual assistants

Finance & Insurance

Moderate

High

Fraud detection, algorithmic trading, chatbots

This data suggests that while some jobs may be automated, AI also drives growth and creates new opportunities within these sectors. The key for career aspirants is adaptability and a commitment to continuous learning to leverage AI's potential.


Note:  Projections and macro-level predictions inherently carry uncertainty; readers are encouraged to use this information to inform, not dictate, their career decisions.


Master AI with Vision

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Jobs Reimagined

Drawing inspiration from Sridhar Vembu's insightful question about a future where automation dominates, it's crucial for engineers to consider not just technical advancements, but also the broader socio-economic implications. As the saying goes, "the only constant is change." Just as digital photography replaced film and smartphones evolved from landlines, new opportunities always emerge as old ways fade. The key lies in embracing this dynamic, continuously upskilling, and adapting to new technologies like AI to thrive in the evolving landscape.


1.From Prompt to Poster | 2. Unravelling Thinking | 3. Future-Proof Careers 


Download this article as a PDF to read offline and share with your network. Help others understand the current landscape and make informed decisions about their future in the AI era.

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