impact of AI on employment

AI and the future of work , will AI replace jobs, AI Impact on Jobs, AI Taking over Jobs, Jobs that AI will replace, Jobs that AI can’t replace

Discover how AI is transforming the job market in 2025. Learn about emerging roles, skill demands, and how to stay relevant in an AI-driven workforce.

Since January, more than 21,000 IT professionals have been laid off in India—across Microsoft, Intel, and TCS. This is part of a larger global trend involving dozens of tech companies, including Google and Amazon. The impact of AI on employment has been compared to entire industries going out of business after the invention of the printing press or the automobile. In 2025, the job market has been undergoing a shift with traditional ‘safe’ jobs in IT and other industries becoming more competitive than ever.

With increasing layoffs and hiring freezes, there are apprehensions about AI and the future of work—especially among college students and fresh graduates looking for jobs. What could the job market look like over the next few months? Will AI replace jobs?

The truth lies somewhere in the middle. While AI’s impact on jobs is undeniable, it brings with it many opportunities, too. Want to know what they are?

In this blog, we’ll demystify how AI is reshaping the job market in India and use the latest data to predict:

  • Jobs that AI will replace

  • Jobs that AI can’t replace

  • What the future holds

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Impact of AI on employment: Outlook for 2025

There is still some debate about whether the recent layoffs in the IT sector occurred due to AI automating entry-level jobs. Some reports say this is merely a correction by tech companies that hired more people than necessary after the pandemic. Is there is a clear correlation between AI and the future of work? Let’s examine the recent employment trends in the following key sectors for a clue:

Manufacturing

In India, hiring for traditional blue-collar jobs and engineering positions remains stable. Though businesses are looking to integrate the latest tech best practices, which can increase demand for IT specialists over time.

Overall trend: Bulk hiring is reducing with a focus on skill-based hiring. Hiring for IT/AI positions is in the early stages.

IT and ITES

In 2025, the IT industry in India is seeing massive demand for AI and ML roles. The latest data shows this is the fastest-growing job category in India. Software engineers continue to remain in demand, but the most growth is happening across AI and ML roles.

Overall trend: Hiring continues for entry-level roles, AI, and ML

Slow demand: Coding and IT support roles

Banking and Finance

Current trends indicate that AI could transform 30% to 40% of banking roles in the future. Currently, hiring is slow across the banking industry in India—the focus is on AI talent as banks move toward digital (also called Neo Banks) banking and other digital services.

Overall trend: Hiring for entry-level jobs remains slow. Hiring for AI/ML talent is increasing.

AI Impact on Jobs: Jobs That AI Will Replace vs Jobs That AI Can’t Replace

Microsoft has come up with a research report on AI and the future of work. Based on Copilot AI’s (Microsoft Bing’s AI assistant) responses to user queries, this study highlights jobs that AI will replace and jobs that AI can’t replace. A team of researchers assessed the applicability of AI to specific job roles based on how accurately Copilot answered their queries.

By correlating user goals and AI output, the team showed how likely it was for AI to automate jobs across a wide range of industries.

Jobs AI Will Replace (In the Short to Medium Term)

The study shows that jobs requiring manual labor, or human interaction cannot be automated by AI. Here are the jobs AI is likely to replace faster than others:

  • Customer support representatives

    According to the study, Bing Copilot was able to handle 90% of all customer support queries over one year. It lists customer support jobs as one of the top roles AI will automate. For common queries such as checking account balances or reporting lost cards, AI chatbots and intelligent IVRs are already replacing agents. Only certain supervisor functions or complaint resolution teams are likely to have human agents in the future.

  • Interpreters and translators

    AI can interpret large volumes of data and translate content in real-time with success rates of over 88%. Though human interpreters and translators may still be needed for more nuanced tasks, AI is a viable replacement for standard tasks.

    A common trend observed during the study was that AI can handle most jobs involving research or information collection from multiple sources.

  • Sales reps

    From advertising to retail, sales roles are likely to be automated by 2030. AI can handle over 84% of sales queries effectively, the study says. Marketers are relying on AI-powered recommendation engines and chatbots to personalize customer journeys across social media, website product pages, and mobile apps. AI recommendation engines and chatbots are able to answer most common questions with high accuracy and context to the user’s queries.

  • Telemarketers

    AI was shown to be capable of handling over 66% of telemarketing queries, providing the right answer 89% of the time. Automated IVR-based systems are increasingly being used for cold-calling, scheduling sales meetings, and follow-up.

    Compared to other roles, the study showed a higher likelihood for AI taking over jobs related to communication.

  • Retail cash counter staff

    AI-powered self-checkout kiosks are replacing counter staff at large department stores and malls around the world. The use of AI chatbots has made it possible for customers to browse menus, place their orders, and pay without assistance from in-store staff.

    With a success rate of 90%, this role is one of the top jobs that AI will replace, according to the study.

Jobs AI Won’t Replace (For the Foreseeable Future)

Now, let’s look at jobs that AI is not likely to replace in the near future. It’s no surprise that AI is not a good fit for jobs requiring manual dexterity or extensive technical knowledge. Here are a few job roles that are generally not replaceable, according to the study.

  • Nursing Assistants

    While AI can help with diagnosis and patient monitoring, it cannot replace the human element in nursing jobs. AI is only applicable in less than 10% of nursing tasks. This makes nursing jobs one of the least likely to be automated.

  • Industrial equipment operators

    Other than training, there are not likely to be many applications for AI when it comes to operating industrial equipment (robots aren’t quite there yet). According to the study, AI had the least applicability to industrial equipment operators. There are stringent safety regulations that require a human in the loop at all times.

  • Gas Station Attendants

    Gas station attendants are another job category that has minimal use for AI—at 1% applicability. Related roles like Highway Maintenance Workers and Pavers, Surfacing and Tamping equipment operators, also scored very low for AI applicability.

    The study also found a direct correlation between education levels and AI applications. In other words, labor-intensive tasks that require minimal education are at least risk for replacement.

  • Ship engineers

    If you’re a marine engineer, your job is relatively safe in the AI era. The study showed only a 5% applicability of AI to most ship engineering tasks. While AI is relatively useful for planning routine tasks, human supervision is essential for day-to-day ship operations and maintenance.

  • Medical equipment operators and maintenance staff

    While AI is automating medical records and helping doctors diagnose diseases, it is generally not suited to operating or maintaining medical equipment. Microsoft’s study rates AI as having minimal ability—just 3%— to replace trained humans anytime soon. In fact, most patient-facing medical professionals are unlikely to face serious competition from AI in the foreseeable future.

  • Logging Equipment Operators

    Logging equipment requires a great deal of control and good hand-eye coordination to operate. This role also has among the least AI applicability of any non-technical job

    In other words, manual jobs like plumbers, electricians, equipment operators, and industrial workers are likely to be unaffected by AI.

Impact of AI on Employment: What the Future Holds

It is clear that AI will automate several jobs, including data entry and bank clerical positions, BPO executives, software testers, and back-office roles. However, it does not necessarily mean humans will no longer be required in these fields.

The future belongs to those who can develop AI skills to increase productivity and innovation—while focusing on ideas and strategy, something AI cannot do. Soft skills like empathy, problem-solving, communication and other human skills will be even more important in the job market of the future. It could help you differentiate yourself from the competition.

Experts at GroYouth
Experts at GroYouth

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