The Big Picture: AI Is Changing Work Right Now

This week's news shows that companies are using artificial intelligence to redesign how they work and who they hire. Three huge companies made big announcements: Amazon cut 14,000 jobs, UPS eliminated 48,000 positions, and Verizon announced 15,000 layoffs in 2025 alone. These companies say they are restructuring to optimize their business, but increasingly they are pointing to AI as a major reason for these cuts. A major report from the Institute for Corporate Productivity predicts that 2026 will be the year when large companies start using AI as a strategic lever for workforce restructuring rather than just a productivity tool.

Jobs Being Lost and Created

While the news about layoffs sounds scary, the actual data tells a more balanced story. In 2024, AI eliminated about 12,700 jobs, but at the same time, AI created approximately 119,900 new jobs in development, training, operations, and related fields. Additionally, the construction of massive data centers required for AI generated over 110,000 construction jobs in 2024, with estimates suggesting each data center creates 3.5 additional jobs in local communities. So while some workers lost their positions, many more found new opportunities. The challenge is that these new jobs are often in different locations and require different skills than the jobs that were eliminated.

What Workers Actually Think About AI

One of the most surprising findings this week is how optimistic workers actually are about AI. An 85% of workers believe AI will improve their jobs over the next two years, even among those who expect their organizations to have fewer employees. Two-thirds of employees think AI will have a positive effect on their work. Workers report that AI is already making real differences: 87% say it increased their productivity, and 57% say it improved their job satisfaction. This optimism is powerful and shows that workers are not as frightened as headlines suggest. Many employees understand that AI can handle boring, repetitive tasks and free them to do more interesting and creative work.

The Real Problem: Weak Training and Poor Management

However, there is a critical disconnect. While workers are ready to embrace AI, many companies are not ready to support them. Only 42% of workers say they receive sufficient training and support for AI from their employers. About 73% of respondents say their companies are "not particularly effective at managing change around AI adoption." This is a major problem because workers who have low satisfaction with their training are much less likely to be optimistic about AI adoption. Workers need real-world training focused on how to actually use approved AI tools, not just general lectures about AI's potential.

The Danger of Fear-Based Leadership

Some companies are taking a dangerous approach by using fear and threats to force AI adoption. Companies like IgniteTech have told employees they must spend 20% of their week on AI or risk losing their jobs. While this might seem like a way to create urgency, it actually backfires. When people feel threatened, their brains enter "protection mode," which actually makes it harder to learn and innovate. Fear-driven mandates create workers who just pretend to go along, not workers who genuinely embrace new tools. Open communication and collaboration unlock AI's potential far more effectively than ultimatums. Companies that frame AI as helping workers (like Microsoft's approach) get much better results than companies that frame it as replacing workers.

What Workers Need to Succeed

Workers and leaders agree on what organizations need to do: develop a culture of transparency, psychological safety, and continuous learning. Both workers and leaders believe employees should be fully involved in designing how AI changes their jobs, not just told what to do. Companies need to invest in continuous upskilling and recognize that workers need both technical knowledge and emotional intelligence skills like creativity and collaboration, which AI cannot replace. HR departments need to be true partners in these transformations, not just afterthoughts, and they need to build trust by providing quality training and support. When companies get these things right, workers are ready and willing to work alongside AI and thrive in the new workplace that is emerging.