A growing number of companies are rethinking their workforce strategies as artificial intelligence (AI) continues to revolutionize industries. According to the World Economic Forum’s (WEF) Future of Jobs Report, 41% of businesses worldwide plan to downsize their workforces by 2030, citing automation and AI as key drivers.

Jobs such as postal service clerks, executive secretaries, and payroll clerks are predicted to experience the steepest declines, according to the report. Generative AI, a subset of AI capable of producing original text, images, and other content, has accelerated this shift. Roles traditionally requiring human input, such as graphic designers and legal secretaries, are also at risk, marking the first time such professions have appeared on the WEF’s list of fastest-declining jobs.

Despite these changes, companies are also focusing on equipping employees with the skills to adapt to an AI-driven future. The report found that 77% of businesses plan to invest in reskilling and upskilling initiatives by 2030. These programs aim to help workers develop AI-related competencies, either by designing AI systems or collaborating effectively with them. Nearly 70% of companies are actively seeking to hire individuals with AI development skills, while 62% plan to bring in talent capable of working alongside AI.

The report emphasizes a silver lining: the potential of AI to enhance, rather than fully replace, human roles. Saadia Zahidi, the WEF’s managing director, highlighted the potential for “human-machine collaboration,” where AI complements human skills instead of rendering them obsolete. This perspective suggests a shift toward augmentation rather than displacement, with human-centered skills remaining vital in an AI-powered world.

Still, the impact of AI-driven automation is already evident. Companies like Dropbox and Duolingo have cited AI advancements as reasons for recent layoffs. As industries navigate this transformation, balancing workforce reductions with investments in skill development will be crucial. AI’s influence on the global job market underscores the urgency for proactive strategies that prepare workers for an uncertain, technology-driven future.

The rise of AI presents both challenges and opportunities, making it essential for businesses and workers alike to adapt to a rapidly changing labor landscape.