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Tue, 21 Jul 2026

Tue, 21 Jul 2026 Will AI help you do your job or replace you?

Artificial Intelligence companies make vast claims about their tools replacing human labour - our charts show what's happening.
AI tools are being developed to automate certain tasks, potentially replacing human labor. Companies are investing heavily in AI, partly to cut costs by reducing headcount. However, there is debate among economists about whether AI will lead to widespread job displacement or enhance productivity. Recent data shows that large language models (LLMs) have improved significantly over the past three years, with some now able to perform complex tasks that previously took humans hours to complete. This trend is being seen in various industries, including software coding, financial analysis, and creative work. Studies suggest that 22-25 year olds are particularly affected by AI-induced job displacement, with a 2.7% decline in employment since ChatGPT became widespread. The impact is higher (12.8%) in sectors most exposed to AI, such as finance, software, and creative industries. Online jobs postings have also been affected since the launch of LLMs. The OECD's analysis suggests that highly exposed sectors (e.g., telemarketing and legal services) are more likely to experience job losses than less exposed sectors (construction, cleaning, and food prep). The UK service sector is particularly vulnerable to AI-induced job displacement due to its high concentration in the sector. The use of AI has increased exponentially, with companies deploying "token leaderboards" to optimize productivity. However, there may be limits to how much work can be automated. Companies are finding that virtual workers (AI agents) can be more expensive than human ones for certain tasks. Additionally, some companies are switching to cheaper Chinese-derived AI models, which could further disrupt the job market.