AI and Job Creation: A Reality Check on Optimistic Projections
Introduction
The conversation around artificial intelligence (AI) and its impact on the labor market often swings between two extremes: fear of mass unemployment and optimism about unprecedented job creation. Reports like the World Economic Forum’s (WEF) claim that AI will create more jobs than it destroys by 2030 feed the latter narrative.
However, recent developments, such as Salesforce’s CEO Marc Benioff’s decision not to hire any new software engineers in 2025 and Mark Zuckerberg’s statement that AI could “effectively be a sort of midlevel engineer,” challenge these optimistic projections. If major corporations like Meta and Salesforce are leading this trend, what does it mean for small and medium-sized businesses? Will they feel compelled to follow suit in order to remain competitive?
Klarna's Efforts: Streamlining Operations with AI
Klarna has taken significant steps to integrate AI into its operations, reducing its workforce by 1,000 employees over the past year through attrition and by halting new hires. CEO Sebastian Siemiatkowski claims that AI can already perform all tasks currently handled by humans, allowing the company to shrink naturally. While Klarna has saved costs by streamlining its operations with AI, the company has promised that part of the savings will be redirected to raise salaries for its remaining employees. However, this claim has yet to be substantiated, leaving skepticism about whether these gains will actually materialize in employee paychecks.
Nvidia's Perspective: A Revolutionary Shift in Programming
Nvidia CEO Jensen Huang presents a bold vision of AI's transformative potential, arguing that traditional programming skills will soon be unnecessary. Huang asserts that advancements in AI have made everyone effectively a "programmer," as AI systems now interpret and execute commands in natural human language. He describes this as the "miracle" of AI, claiming it has closed the technology divide and democratized access to computing. By making programming accessible to anyone, Huang suggests that AI will revolutionize industries and redefine the skills required to thrive in the modern workforce.
Both Klarna's and Nvidia's approaches reflect a growing trend among leading corporations to capitalize on AI’s capabilities. Klarna demonstrates how AI is reshaping the workforce by reducing headcount while promising efficiency gains for remaining employees, though with unproven benefits. Nvidia, on the other hand, envisions a world where AI eliminates traditional barriers to programming, potentially making it unnecessary for future generations to learn traditional coding skills. These shifts underscore the need for businesses and governments to prepare for a radically different labor market, one that prioritizes adaptability, education, and equitable access to opportunities.
ZUCKERBERG ANNOUNCES PLANS TO AUTOMATE FACEBOOK CODING JOBS WITH AI
"AN AI THAT CAN EFFECTIVELY BE A SORT OF MIDLEVEL ENGINEER." - futurism.com
3,600 jobs cut at Meta: Meta focuses on efficiency, talent retention, and strategic hiring to stay competitive in tech.
Comment: Keep supporting AI and this whole country will be jobless!
Salesforce Will Hire No More Software Engineers in 2025, Says Marc Benioff - salesforceben.com
Klarna CEO says “AI can already do all the jobs that we as humans do…we stopped hiring about a year ago”
Comment: Klarna fired over 1,000 employees replaced by AI now struggling to reenter a saturated job market. You mean more money in your pocket Mr. CEO?
Narrator: but he did not in fact raise salaries.
Nvidia CEO Jensen Huang: “Don’t waste your time learning coding”
Comment: “Everyone is now a programmer, this is the miracle” - It is a true “miracle” No need to pay software engineers anymore”
In this blog post, I analyze the latest trends in AI adoption, corporate behavior, and workforce realities to explore whether the promise of AI-driven job creation can truly offset its displacement effects.
AI’s Growing Capabilities: Displacement at the Forefront
AI’s ability to perform complex tasks once reserved for mid-level workers, such as software programming, marks a pivotal shift in its role in the workforce. Tools like GitHub Copilot and ChatGPT have matured to the point where they can write, debug, and optimize code faster and more accurately than human workers. As companies like Salesforce, Meta, Klarna, Nvidia and others, capitalize on these advancements, it is clear that the workforce disruption many feared is no longer a distant possibility—it is happening now.
These developments highlight the rapid acceleration of AI’s capabilities, with companies increasingly opting to replace workers rather than retrain them. While the WEF report predicts that AI will create 170 million new roles while displacing 92 million—resulting in a net gain of 78 million jobs—it remains uncertain whether these roles will materialize quickly enough or be accessible to the workers being displaced.
Job Creation vs. Accessibility
The optimistic projection of net job creation assumes that displaced workers can seamlessly transition into new roles. However, this assumption faces several challenges:
1. High Barriers to Entry:
Many of the roles created by AI—such as AI specialists, data scientists, and cybersecurity experts—require advanced technical skills. For displaced workers, especially those in mid-level roles like software engineering, retraining for these positions demands significant time, resources, and access to quality education.
2. Polarization of Opportunities:
New job opportunities are likely to cluster in specialized fields and geographic tech hubs, leaving workers in less advantaged regions or industries with fewer options. This could exacerbate economic inequality and leave large portions of the workforce unprepared for the jobs of the future.
3. Corporate Reluctance to Retrain:
Despite the WEF’s claim that 77% of companies plan to implement retraining programs, real-world examples from Salesforce and Meta suggest a preference for replacing workers with AI rather than investing in their reskilling. Without government incentives or regulatory pressure, this trend may leave millions of workers behind.
Corporate Trends: Profit Over People
The actions of major tech companies reflect a broader corporate trend: prioritizing cost savings and efficiency over workforce development. By leaning on AI to replace mid-level engineers, these companies demonstrate a short-term approach to maximizing profitability. This raises a critical question: if companies are unwilling to invest in retraining programs now, can we realistically expect a future where displaced workers benefit from AI-driven job creation?
The reliance on AI also risks creating a hollow middle in the labor market, with fewer mid-level positions available as AI fills the gap between entry-level and senior roles. This “missing middle” could leave early-career professionals with fewer growth opportunities, further compounding the challenges of workforce displacement.
The Skills Gap and Inequality
The WEF’s prediction that 39% of current skill sets will become obsolete by 2030 underscores the urgency of reskilling. However, the speed at which AI is advancing may outpace workers’ ability to adapt. Without significant investment in education and training, the gap between those who can and cannot transition to AI-enabled roles will widen, deepening social and economic inequality.
Additionally, industries and regions heavily reliant on mid-level technical jobs could face severe economic hardship. Workers in these areas may lack access to the resources needed to reskill, further marginalizing vulnerable populations.
A Path Forward: Balancing Innovation and Workforce Preservation
The promise of AI creating more jobs than it destroys is not unattainable, but it requires coordinated action from governments, companies, and educational institutions. Here’s what needs to happen to turn optimism into reality:
1. Government Policy and Incentives:
Governments must provide tax incentives, grants, and funding for retraining programs to encourage companies to invest in their workforce. Policies promoting lifelong learning and workforce adaptation are essential to ensure displaced workers can transition into new roles.
2. Corporate Responsibility:
Companies must recognize that short-term cost savings through automation could have long-term consequences for the economy. Investing in employee reskilling is not just an ethical imperative—it is a strategic move to ensure a sustainable talent pipeline.
3. Accessible Education and Training:
Education systems need to pivot to focus on future-proof skills such as AI literacy, data analysis, and cybersecurity. Programs must be affordable, scalable, and accessible to underserved communities to prevent inequality from widening.
4. Public-Private Partnerships:
Collaboration between governments, businesses, and nonprofits can accelerate workforce reskilling and ensure that displaced workers have access to quality training and job opportunities.
Conclusion
The claim that AI will create more jobs than it destroys by 2030 is a hopeful vision, but one that must be grounded in action. Current trends, as evidenced by Salesforce, Meta, Klarna and Nvidia, suggest that companies are moving toward automation without adequately addressing workforce displacement. The resulting skills gap, economic inequality, and regional disparities could undermine the benefits of AI-driven innovation.
To ensure AI becomes a force for good in the labor market, governments, companies, and educational institutions must act decisively. The future of work depends not just on the capabilities of AI but on the willingness of society to support workers through this transformative period. Without proactive measures, the promise of AI-driven job creation may remain an unfulfilled aspiration.
A Personal Note
As I reflect on these challenges, I am reminded of my father, who often emphasized the importance of education in science or engineering as a safeguard for a stable, long-term career. However, in today’s rapidly evolving world, even these paths are no longer guarantees of security. Like the French often say: “on n’est pas dans la merde!”, meaning, “we’re in trouble”—and without swift and coordinated government action, there is little optimism ahead. Now, more than ever, we need decisive leadership to ensure that workers are not left behind in this new era of AI-driven transformation.
