During a recent round of labor negotiations, a union proposed the following language regarding artificial intelligence (AI): “Artificial Intelligence shall not be utilized in any manner that displaces, diminishes, or eliminates existing bargaining unit work. AI shall not replace, displace, or erode job classifications or duties currently performed by bargaining unit employees.” This proposal was rejected without a counteroffer for several reasons, including that the employer (a manufacturing facility) would not agree to a limitation on the impact of AI, as AI continues to evolve and its impact on several sectors is unpredictable. The union’s proposal evolved from the fear of job loss due to AI, but how realistic and widespread is that outcome?
Job Losses and AI
In a recent fact check by Tufts University’s nonpartisan publication Econofact, author Keshav Srikant stated that between January 2025 and September 2025, 17,375 jobs were cut because of AI, quoting labor market research firm Challenger, Gray & Christmas. During August 2025 alone, there were 5.1 million job separations, which suggests that AI-related separations thus far have been minimal.
However, Srikant also cites a Stanford study that found a 13% relative reduction in entry-level employment in industries most exposed to AI. According to The Future of Global Jobs Report 2025, 39% of key job skills will change by 2030, led by technology skills. It may be that AI doesn’t result in job separations but rather a reduction in key job categories.
AI Automation Likely to Affect Particular Industries
An analysis by the University of San Diego identified the industries where job automation is most likely to result in a transformative decline of jobs:
- Customer service and experience;
- Banking and insurance; and
- Transportation.
In all three sectors, we’ve experienced how AI has reduced the point of contact with people. In customer service, we’re given prompts that seem to take forever before we speak to someone. In banking, paperwork is more automated, which has the benefit of more effectively detecting fraud. And in transportation, we’re experiencing self-driving cars, soon to include trucks and buses.
Bottom Line
You should be transparent regarding your AI plans. Otherwise, employees will seek their own answer to whether AI will replace them, and that answer is likely to be alarmist and incorrect.
Richard Lehr is an attorney with Lehr Middlebrooks Vreeland & Thompson, P.C., in Birmingham, Alabama, and can be reached at 205-323-9260 or rlehr@lehrmiddlebrooks.com.
Looking for more info? Check out HR Daily Advisor’s Compliance Week Event here!