Sen. Bernie Sanders has issued a stark warning about artificial intelligence's impact on employment during a recent rally in Maine, stating that 'artificial intelligence and robotics are going to be the most transformative economic revolution in the history of this country.' The Vermont senator specifically warned that truck drivers, cab drivers, Uber Technologies Inc. and Lyft Inc.'s drivers could eventually lose their jobs as autonomous vehicle technology expands across the country. Sanders criticized wealthy technology leaders, including Elon Musk, Jeff Bezos and Mark Zuckerberg, arguing that AI development was becoming concentrated among billionaires seeking greater wealth and power. He warned that the rapid rise of AI could deepen economic inequality if governments fail to regulate the technology and ensure workers benefit from productivity gains. Sanders also raised concerns about AI-generated misinformation and the social impact of children increasingly interacting with AI bots instead of real people, stating he did not want future generations forming friendships with AI bots instead of human relationships.
A recent survey by consulting firm Mercer has revealed that 99% of CEOs envision AI-driven layoffs in the short term, covering 12,000 C-suite executives, HR leaders, employees, and investors. The survey showed that an overwhelming majority of executives expect AI 'to lead to at least some headcount reduction in the next two years.' This expectation is supported by Oliver Wyman's report showing that AI was a top-three priority for most CEOs, with more than 90% confirming the deployment or intention to deploy AI in their companies. However, the reality shows mixed results, with only 27% of CEOs saying the return on AI investment had actually met or exceeded expectations, down from 38% the previous year. Nearly 25% said they had seen absolutely no impact on revenue, suggesting that the realities of redesigning entire workflows may be curbing AI enthusiasm despite widespread deployment.
OpenAI CEO Sam Altman has publicly admitted that his company was 'pretty wrong' about the social and economic implications of AI technology, despite being 'roughly right' on technological predictions. Speaking at a Commonwealth Bank of Australia conference in Sydney, Altman told CBA Chief Executive Matt Comyn that he was 'delighted to be wrong' about predictions of a 'jobs apocalypse' that many in the AI industry have been advocating. According to Reuters, Altman stated he 'thought there would have been more impact on entry-level white-collar jobs being eliminated by now than has actually happened.' He acknowledged that his initial concerns about AI's employment impact were 'just off' and that he was 'grateful' for being proven wrong. The survey data suggests this optimistic outlook may be increasingly challenged as young professionals, aged 22 to 27, face the highest risk of job displacement as CEOs target simple tasks that typically served to train new hires.
The AI transformation is creating significant workplace disruption, with work and economic anxiety increasing among employees while workplace well-being has plummeted. The portion of workers reporting that they 'feel good at work' dropped from 66% in 2024 to just 44%. Oliver Wyman's report reveals that the number of companies actively reducing junior/entry-level roles spiked from 17% to 43% in a single year due to automation. Standard Chartered recently announced plans to cut 7,000 jobs to replace 'lower-value human capital' and focus on automation. Despite these trends, the Mercer report found that only 32% of surveyed executives believe their companies can effectively combine human labor with AI systems, even as they heavily push for AI to maximize return on investment. This disconnect between deployment and effectiveness raises questions about the long-term sustainability of current AI transformation strategies.
Despite Altman's optimistic assessment, layoffs continue across the global technology sector with significant job cuts announced by major companies. According to layoff tracker True Up, around 134,000 to 144,000 tech workers lost their jobs globally in the first five months of 2026 as companies shifted spending toward AI infrastructure, cloud computing, data centres and advanced chips. Major companies including Block (nearly 4,000 jobs), Amazon (about 30,000 roles), Oracle (around 20,000 jobs), Meta (8,000 jobs) and others have announced workforce reductions linked to AI restructuring and automation. Microsoft, Cisco and Coinbase have also announced workforce reductions as part of their AI transformation strategies. Recent developments include Meta laying off around 8,000 workers following multiple failed AI-linked projects, with many others forcibly reassigned to new AI work, while Standard Chartered faced criticism after its CEO described workers as 'lower value human capital' shortly after cutting thousands of jobs in favor of AI tools.
Hassett dismissed concerns that AI is making it harder for recent college graduates to find jobs, citing recent employment data. According to his statements, the unemployment rate for new college graduates has plummeted, with the most recent data showing graduates are being hired in droves. This contradicts the common narrative that AI is creating barriers for entry-level employment, suggesting that the technology is actually expanding job opportunities across different skill levels and creating new career paths in AI-related fields. However, the Mercer survey reveals that entry-level hiring is collapsing as an entire generation risks being locked out of the workforce. Because generative AI excels at codifiable, routine entry-level tasks, companies are slowing down traditional junior hiring pipelines, potentially creating a situation where an entire generation could find itself shut out of the traditional career pipeline altogether - trapped in a labor market that increasingly demands experience while simultaneously eliminating the jobs designed to provide it.
