AI job losses fall short of forecasts

Job losses as a result of businesses’ adoption of AI have fallen short of expectations, a McKinsey Global Survey finds. McKinsey’s Dan Tinkoff, Lieven Van der Veken, Michael Chui, and Tara Balakrishnan note that 32 percent of respondents in 2025 anticipated head count reductions due to AI, yet only 14 percent reported reductions in workforce a year later. Two-thirds of respondents in 2026 reported little or no AI-related change in their organizations’ total employment during the previous year. However, 39 percent said they expect AI to reduce head count at their organizations over the next year.

Last year’s respondents overestimated AI’s impact on head count, and expected reductions in the next year are larger still.
Image description. Stacked bar chart comparing respondents’ expectations and reported changes in enterprise head count due to AI. In 2025, 32% expected AI to reduce head count in the next year, but in 2026 only 14% reported an actual reduction over the prior year. Looking ahead, 39% of 2026 respondents expect head count to decrease in the next year, while 43% expect little or no change and 10% expect an increase. This image description was completed with the assistance of Writer, a gen AI tool. Source: McKinsey Global Surveys on the state of AI, June 25–July 29, 2025 End of image description.

To read the survey, see “The state of AI in 2026: On the road to ROI,” August 25, 2026.