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How Will AI Affect the Global Workforce?

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Temporary unemployment caused by the adoption of labor-saving technologies typically increases the US jobless rate by 0.3 percentage point with every 1 percentage point gain in technology-driven productivity growth. However the impact is usually fleeting—such job displacement tends to disappear after two years, Briggs and Dong write.

How will AI impact labor productivity?

Our economists estimate that generative AI will raise the level of labor productivity in the US and other developed markets by around 15% when fully adopted and incorporated into regular production. That would translate into a half-percentage-point rise in the unemployment rate above its trend during the AI transition period, though that impact could be higher if AI adoption is more frontloaded than they assume.

As part of their research, the team examined more than 800 occupations to assess whether AI productivity gains will translate into job displacement. The 6-7% estimate for job displacement from AI is the team’s baseline assumption, but they write that displacement rates could vary from 3% to 14% under different assumptions.

What could AI mean for unemployment?

There are two ways in which AI could hypothetically lead to an increase in unemployment. The first is if AI capabilities advance to a point where human input becomes redundant for many types of production, leading to persistent structural unemployment.

This outcome is unlikely, according to Goldman Sachs Research, because technology change tends to boost demand for workers in new occupations. That can take place either directly through new jobs that emerge from technological change or indirectly by triggering an overall boost in output and demand. Approximately 60% of US workers today are in occupations that didn’t exist in 1940, implying that more than 85% of employment growth since then has been from technology-driven job creation.

“Predictions that technology will reduce the need for human labor have a long history but a poor track record,” Briggs and Dong write.

However there could also be a period of higher unemployment while AI-displaced workers are looking for new jobs. “Frictional unemployment is not unique to AI and occurs during most periods of rapid technological change,” Briggs and Dong write. Historically, upheaval from technological innovation has proven to be temporary—after two years there is no noticeable impact.

Is AI already causing job losses?

Recent commentary by some public companies suggests the labor market is already experiencing effects related to AI. Executives from the technology and finance sectors say they are seeing efficiency gains from generative AI that are sufficient to slow their hiring, especially in operational and back-office capacities.

That said, AI adoption remains relatively low, especially among midsized and small enterprises. While adoption rates have accelerated recently, the vast majority of companies have not incorporated AI into regular workflows. In a recent US survey, only 9.3% of companies reported that they had used generative AI in production during the last two weeks.

To date, low adoption is limiting the overall labor-market impacts from AI, according to Goldman Sachs Research. Our economists found no significant statistical correlation between AI exposure and a host of economic measures, including job growth, unemployment rates, job finding rates, layoff rates, growth in weekly hours, or average hourly earnings growth.

What industries are being affected by AI?

Still, there are early signs of disruption in specific industries. Employment growth in industries such as marketing consulting, graphic design, office administration, and telephone call centers has fallen below trend amid reports of reduced labor demand due to AI-related efficiency gains.



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Study reveals why humans adapt better than AI

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Humans adapt to new situations through abstraction, while AI relies on statistical or rule-based methods, limiting flexibility in unfamiliar scenarios.

A new interdisciplinary study from Bielefeld University and other leading institutions explores why humans excel at adapting to new situations while AI systems often struggle. Researchers found humans generalise through abstraction and concepts, while AI relies on statistical or rule-based methods.

The study proposes a framework to align human and AI reasoning, defining generalisation, how it works, and how it can be assessed. Experts say differences in generalisation limit AI flexibility and stress the need for human-centred design in medicine, transport, and decision-making.

Researchers collaborated across more than 20 institutions, including Bielefeld, Bamberg, Amsterdam, and Oxford, under the SAIL project. The initiative aims to develop AI systems that are sustainable, transparent, and better able to support human values and decision-making.

Interdisciplinary insights may guide the responsible use of AI in human-AI teams, ensuring machines complement rather than disrupt human judgement.

The findings underline the importance of bridging cognitive science and AI research to foster more adaptable, trustworthy, and human-aligned AI systems capable of tackling complex, real-world challenges.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!



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Josh Bersin Company Research Reveals How Talent Acquisition Is Being Revolutionized by AI

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  • Jobs aren’t disappearing. Through AI, talent acquisition is fast evolving from hand-crafted interviewing and recruiting to a data-driven model that ensures the right talent is hired at the right time, for the right role with unmatched accuracy

  • Traditional recruiting isn’t working: in 2024, only 17% of applicants received interviews and 60% abandoned slow application processes

  • AI drives 2–3x faster hiring, stronger candidate quality, sharper targeting—and 95% candidate satisfaction at Foundever, from 200,000+ applicants in just six months

OAKLAND, Calif., Sept. 16, 2025 /PRNewswire/ — The Josh Bersin Company, the world’s most trusted HR advisory firm, today released new research showing that jobs aren’t disappearing—they’re being matched with greater intelligence. The research, produced in collaboration with AMS, reveals major advances in talent acquisition (TA) driven by AI-enabled technology, which are yielding 2–3x faster time to hire, stronger candidate-role matches, and unprecedented precision in sourcing.

The Josh Bersin Company (PRNewsfoto/The Josh Bersin Company)

The global market for recruiting, hiring, and staffing is over $850 billion and is growing at 13% per year, despite the economic slowdown, though signs of strain are evident. This means TA leaders are turning to AI to adapt, as AI transforms jobs, creates the need for new roles, new skills, and AI expertise.

According to the research and advisory firm, even without AI disruption, over 20% of employees consider changing jobs each year, driving demand for a new wave of high-precision, AI-powered tools for assessment, interviewing, selection, and hiring. Companies joining this AI revolution are hiring 200-300% faster, with greater accuracy and efficiency than their peers, despite the job market slowdown.

According to the report, The Talent Acquisition Revolution: How AI is Transforming Recruiting, the TA automation revolution is delivering benefits across the hiring ecosystem: job seekers experience faster recognition and better fit, while employers gain accurate, real-time, and highly scalable recruitment.

This is against a context of failure with current hiring. In 2024, less than one in four (17%) of applicants made it to the interview stage, and 60% of job seekers, due to too-slow hiring portals, abandoned the whole application process.

The research shows how organizations are already realizing benefits such as lower hiring costs, stronger internal mobility, and higher productivity. AI-empowered TA teams are also streamlining operations by shifting large portions of manual, admin-heavy work to specialized vendors.

Early successes are striking: after deploying conversational AI, a major U.S. resort operator increased scheduled interviews by 423% in 12 months while reducing candidate drop-off by 85%. A new AI TA process at Foundever hit 95% candidate satisfaction rating from over 200,000 applicants in just six months, while a leading global automotive company reported $2 million in savings in its first year using AI-powered interview scheduling.

The research highlights how AI is helping TA overcome frustrations like vague job descriptions, inconsistent interviews, and labor-intensive processes.

HR teams now use AI to automate tasks from profiling and sourcing to screening, scheduling, interviewing, and negotiating offers. Companies showcasing these successes include major international brands spanning the hospitality, food, healthcare, and technology sectors, such as Fontainebleau Las Vegas and Compass Group.

Some organizations are using AI-powered recruiting assistants to manage routine communication and negotiations. Recruiters set parameters for salary, benefits, and start dates, while the AI answers questions, updates offers, and proposes alternatives in real time. By automating tasks and personalizing the experience, AI shortens turnaround times and frees recruiters to focus on strategy.

The vendor market is transforming, with SAP acquiring SmartRecruiters and Workday acquiring Paradox to stay competitive. Innovations include AI agents enabling automation of the full hiring journey (Eightfold AI, Maki People) conversational AI for candidate engagement (Glider AI, Paradox, Radancy), AI-driven assessments (CodeSignal, HireVue, TaTiO), and platforms that benchmark roles against labor market data (Draup, Galileo, Lightcast, Reejig, SeekOut, TechWolf).

Report author and Josh Bersin Company Industry Analyst & Senior Research Director, Stella Ioannidou, says:

“For decades, TA has been viewed as a cost center, focused on using applicant tracking systems to manage incoming candidates and relying on recruiters to screen and interview. This process was slow, expensive, and delivered a poor experience for job seekers.

“Today, by leveraging AI-powered platforms and integrated data, TA teams can identify, attract, and engage the best talent in the market with unparalleled precision, often before competitors even know those candidates are available—resulting in a proactive, data-driven approach that enables organizations to respond quickly to changing business needs, seize new opportunities, and fuel growth from within.”

Chief Executive Officer at AMS, Gordon Stuart, says:

“This research paper captures the urgency and scale of the AI revolution which is transforming TA. It doesn’t just reflect what’s happening now, it helps us understand what’s next. Candidates want speed, clarity, and connection. Recruiters need tools that free them to focus on strategy and relationships. And businesses must rethink how talent acquisition fits into their broader growth agenda. AI is not just automating tasks, it’s redefining roles, workflows, and expectations across the board. The cumulative power of people, process, data and technology is heralding a new era for talent acquisition.”

Global industry analyst and Josh Bersin Company CEO, Josh Bersin, says:

“AI is expected to provide CHROs with a data-rich view of talent comparable to an integrated supply chain, enabling them to track and analyze every detail of each hire with the same precision a luxury Swiss watchmaker applies to every component and its origin.

“This transition transforms HR from handcrafted processes to precision, dynamic hiring—something once unattainable without AI.

“The implications are significant for all stakeholders, particularly CEOs. Organizations that lacked a precision hiring process have historically faced millions in lost revenue, high turnover, and misaligned talent—but those days are now coming to an end.”

This new research follows previous Josh Bersin Company findings demonstrating how AI is transforming another core HR function: Learning & Development.

The Josh Bersin Company’s Galileo Suite delivers both strategic guidance and hands-on tools through its AI Agent for HR, as well as hyper-personalized learning through the exclusive Galileo Learn certificate course, AI-First TA Transformation. The full report is available to download here.

About AMS
AMS is a leading global provider of talent acquisition and consulting services, providing unrivalled experience, driven by technology and underpinned by innovation. We help our clients to attract, engage and retain the talent they need for business success.

We have three core areas of service: acquisition, advisory and digital, mainly delivered as an outsourced model, and spanning our clients’ permanent and contingent workforce, and internal mobility requirements.

Our dedicated teams of experts are deeply embedded with our global blue-chip clients, enhancing talent acquisition processes and driving projects which align with overall strategic objectives. This relationship-driven approach is supporting our clients to redefine how they hire and retain top talent. For more, go to www.weareams.com/

About The Josh Bersin Company

The most trusted human capital advisors in the world. More than a million HR and business leaders rely on us to help them overcome their greatest people challenges.

Thanks to our understanding of workplace issues, informed by the largest and most up-to-date data sets on workers and employees, we give leaders the confidence to make decisions in line with the latest thinking and evidence about work and the workplace. We’re great listeners, too. There’s no one like us, who understands this area so comprehensively and without bias.

Our offerings include the industry’s leading AI-powered HR expert assistant, Galileo®, fueled by 25 years of in-depth Josh Bersin Company research, case studies, benchmarks, and market information.

We help CHROs and CEOs be better at delivering their business goals. We do that by helping you to manage people better. We are enablers at our core. We provide strategic advice and counsel supported by in-depth research, thought leadership, and unrivaled professional development, community, and networking opportunities.

We empower our clients to run their businesses better. And we empower the market by identifying results-driven practices that make work better for every person on the planet.

Cision
Cision

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Causaly Introduces First Agentic AI Platform Built for Life Sciences Research and Development

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Specialized AI agents automate research workflows and accelerate
drug discovery and development with transparent, evidence-backed insights

LONDON, Sept. 16, 2025 /PRNewswire/ — Causaly today introduced Causaly Agentic Research, an agentic AI breakthrough that delivers the transparency and scientific rigor that life sciences research and development demands. First-of-their-kind, specialized AI agents access, analyze, and synthesize comprehensive internal and external biomedical knowledge and competitive intelligence. Scientists can now automate complex tasks and workflows to scale R&D operations, discover novel insights, and drive faster decisions with confidence, precision, and clarity.

Industry-specific scientific AI agents

Causaly Agentic Research builds on Causaly Deep Research with a conversational interface that lets users interact directly with Causaly AI research agents. Unlike legacy literature review tools and general-purpose AI tools, Causaly Agentic Research uses industry-specific AI agents built for life sciences R&D and securely combines internal and external data to create a single source of truth for research. Causaly AI agents complete multi-step tasks across drug discovery and development, from generating and testing hypotheses to producing structured, transparent results always backed by evidence.

“Agentic AI fundamentally changes how life sciences conducts research,” said Yiannis Kiachopoulos, co-founder and CEO of Causaly. “Causaly Agentic Research emulates the scientific process, automatically analyzing data, finding biological relationships, and reasoning through problems. AI agents work like digital assistants, eliminating manual tasks and dependencies on other teams, so scientists can access more diverse evidence sources, de-risk decision-making, and focus on higher-value work.”

Solving critical research challenges

Research and development teams need access to vast amounts of biomedical data, but manual and siloed processes slow research and create long cycle times for getting treatments to market. Scientists spend weeks analyzing narrow slices of data while critical insights remain hidden. Human biases influence decisions, and the volume of scientific information overwhelms traditional research approaches.

Causaly addresses these challenges as the first agentic AI platform for scientists that combines extensive biomedical information with competitive intelligence and proprietary datasets. With a single, intelligent interface for scientific discovery that fits within scientists’ existing workflows, research and development teams can eliminate silos, improve productivity, and accelerate scientific ideas to market.

Comprehensive agentic AI research platform

As part of the Causaly platform, Causaly Agentic Research provides scientists multiple AI agents that collaborate to:

  • Conduct complex analysis and provide answers that move research forward
  • Verify quality and accuracy to dramatically reduce time-to-discovery
  • Continuously scan the scientific landscape to surface critical signals and emerging evidence in real time
  • Deliver fully traceable insights that help teams make confident, evidence-backed decisions while maintaining scientific rigor for regulatory approval
  • Connect seamlessly with internal systems, public applications, data sources, and even other AI agents, unifying scientific discovery

Availability

Causaly Agentic Research will be available in October 2025, with a conversational interface and foundational AI agents to accelerate drug discovery and development. Additional specialized AI agents are planned for availability by the end of the year.

Explore how Causaly Agentic Research can redefine your R&D workflows and bring the future of drug development to your organization at causaly.com/products/agentic-research.

About Causaly

Causaly is a leader in AI for the life sciences industry. Leading biopharmaceutical companies use the Causaly AI platform to find, visualize, and interpret biomedical knowledge and automate critical research workflows. To learn how Causaly is accelerating drug discovery through transformative AI technologies and getting critical treatments to patients faster, visit www.causaly.com.

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