3 in 10 Firms Plan to Replace Workers with AI Next Year

New research shows that three in ten firms are preparing to replace employees with AI next year. This is reshaping how organizations think about automation, labor strategy, and long-term workforce planning. As AI systems grow more capable and affordable, industries from IT to accounting are assessing which roles can be automated, and how AI can be deployed to cut costs or improve efficiency.

The possibility that companies may replace workers with AI is quickly becoming a reality, not a prediction. This report breaks down the trends, risks, and opportunities highlighted in the latest findings.

AI-Driven Workforce Reduction Is Becoming a Real Strategy

A recent survey of 1,250 U.S. business leaders found that rising AI adoption is starting to reshape workforce planning. According to the report, 30% of companies expect to replace workers with AI within the next year, far higher than projections from even a year ago.

How Much Will Be Replaced By AI?

Among leaders who anticipate downsizing due to AI:

• 59% expect AI to replace at least 10% of their workforce.

• 10% predict AI will replace 50% or more of their employees.

This emerging trend indicates that companies replacing workers with AI are no longer fringe examples, automation is becoming a mainstream strategic lever.

The study identifies several sectors where AI replacing human workers is most likely:

Technology & Software

IT and software organizations have the highest exposure because many of their workflows — coding assistance, testing, documentation, support — can be automated.

Financial Services & Accounting

Finance functions are already seeing automation-driven reductions. AI-enabled tools now handle routine accounting, reporting, reconciliation, and administrative tasks.

Human Resources

Resume screening, onboarding workflows, scheduling, and policy administration are increasingly supported by automation platforms.

Manufacturing & Retail

These industries are adopting AI for forecasting, logistics, and automated monitoring—reducing reliance on routine administrative and clerical staff.

Customer Service & Admin Roles Are Most at Risk

Leaders say the first wave of reductions will hit:

• Customer service and call center roles

• Administrative and clerical positions

• IT and technical support roles

These jobs contain predictable, repetitive work, which is ideal for automation.

AI is Among the Job Cuts Drivers

Economic conditions have also amplified the shift toward automation. U.S. employers announced 153,074 job cuts in October, a 175% increase year over year. While cost-cutting remains the leading cause, AI has now become the second most common reason for layoffs.

Private-sector firms cited:

• 50,437 job cuts due to cost reduction

• 48,414 job cuts directly linked to AI adoption

This is the strongest signal yet that AI replacing workers is not hypothetical—it is actively shaping labor decisions.

AI Is Transforming Finance Roles

Finance leaders are still early in their AI journey, but change is happening. A separate study found that nearly 20% of CFOs have already eliminated roles because of AI.

The most affected areas include:

• Accounting – 88% of AI-related role reductions

• FP&A – 38%

• Treasury – 33%

But CFOs emphasize a balanced approach. They aren’t simply letting AI replace workers, they are using it to redesign roles so teams can focus more on judgment-driven, strategic tasks.

Leaders Say AI Should Free Humans, Not Replace Them Entirely

The report stresses that while some companies plan to let AI replace workers, many leaders are urging the opposite approach.

Career advisors note that AI should be used to “automate monotonous tasks,” enabling employees to:

• Contribute to strategic initiatives

• Take on higher-level work

• Lead new projects

• Explore roles with more business impact

This perspective supports the argument that AI replacing human workers isn’t the end goal, rather, it's an opportunity to reshape jobs and unlock innovation.

Why Companies Are Turning to AI for Workforce Reduction

There are three central drivers behind the trend:

1. Cost Pressure and Efficiency Demands

Economic uncertainty and high interest rates are pushing companies to trim budgets. AI offers a way to reduce labor costs without cutting productivity.

2. Automation Is Becoming Cheaper and More Capable

New AI tools can automate:

• Data entry

• Reporting

• Scheduling

• Customer interactions

• Documentation

• IT troubleshooting

• Risk detection

• Workflow analysis

Tasks that once required teams of employees now require a single AI-enabled system.

3. Competitive Pressure to Modernize

Companies fear being left behind by competitors who adopt AI earlier and reduce operational costs faster.

The calculus is shifting: if a company replaces workers with AI, and competitors do the same, organizations that delay automation risk falling behind.

What This Means for the Future of Work

The findings show that the workforce is entering a transition period where AI replacing workers is becoming normalized—but not universal.

Routine Work Will Decline

Clerical, support, and process-heavy jobs will continue to shrink.

Strategic and Analytical Jobs Will Grow

AI boosts productivity, enabling teams to expand into higher-value work.

New AI-Augmented Roles Will Emerge

Employees who learn to work with AI—not against it—will be in the strongest position.

Companies Need Clear Transformation Plans

Leaders must balance automation benefits with talent development to avoid capability gaps.

AI Workforce Change is About Reallocation

While it’s true that 3 in 10 firms plan to replace workers with AI, the report also makes something clear: this is not just a story about elimination, but it’s a story about transformation. Companies may use AI to reduce headcount in certain departments, but the long-term trend is toward redeploying talent, elevating skills, and creating more strategic, high-impact roles.

The future of AI in the workplace isn't a choice between people and AI. It’s a future built by people with AI.