The adoption of artificial intelligence is dramatically impacting the labor market, particularly in the tech sector where many workers are being laid off. Major companies like Microsoft are reducing headcount while investing heavily in AI technologies. Conversely, job postings for non-tech roles requiring AI skills are increasing and come with higher salaries. Data shows a decline in AI roles within traditional tech positions, indicating a broader economic shift as AI influences fields beyond technology, offering new opportunities in various sectors.
Employers, racing to integrate AI into everything from cloud infrastructure to customer support, are trimming human headcount in software engineering, IT support, and administrative functions.
Job postings for non-tech roles that require AI skills are soaring in value, offering 28% higher salaries—an average of nearly $18,000 more per year.
The proportion of AI jobs within IT and computer science has fallen from 61% in 2019 to just 49% in 2024, signaling an ongoing contraction of traditional tech roles.
More than half of all jobs requesting AI skills in 2024 appeared outside the tech sector, reflecting a radical reversal from previous years.
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