Issue 1
Viewpoint
regulation · Hungary
What employers must prove when citing AI for dismissals in Hungary
A Hungarian article (6 August) says dismissals citing AI can also occur in Hungary. It sets out what an employer must demonstrate in such terminations.
Who is affected and how
- HR professional
- When terminating with reference to AI, the reason and the actual elimination of the position should be documented in advance.
- manager
- AI is not a general ground for termination; the change to the job role must be proven.
- employee
- When AI is cited as the reason for termination, it is worth asking for proof that the reason is genuine and for reasonable alternatives.
layoffs · United States
US layoffs fall to two-year low in July, with AI the top cited reason for fifth month
The Challenger report (6 August) says announced US layoffs fell to their lowest level in two years in July, while hiring picked up. The report says AI has topped the list of layoff reasons for the…
employeeThe number of AI-related layoffs is not rising in absolute terms, so assess the risk to your own position at task level, not job-title level.HR professionalPrepare data for management's questions on how much of the AI cited as a layoff reason is actual automation.job seekerHiring is picking up, so the market is more open than layoff headlines suggest.regulation · European UnionEU AI Act: AI tools used in recruitment are high-risk, and HR departments must prepare
Several professional summaries in early August, including Hungarian-language ones, discussed how workplace and hiring AI falls among the high-risk tools under the AI Act. According to the articles…
HR professionalTake an inventory of the recruitment and evaluation AI tools in use, and request vendors' compliance documentation.managerResponsibility remains with the employer, so an AI governance officer should be appointed.SME ownerFor the AI functions of purchased HR software, check that the vendor is compliant.survey · globalPwC: AI is creating a two-track labour market, and AI skills earn a wage premium
PwC's 2026 AI Jobs Barometer (3 August) says the labour market is splitting into "professionalised" roles, where AI acts as a force multiplier for experts, and all other roles. A Romanian report says…
employeeAI skills can earn a wage premium, so it is worth documenting how AI is applied in your own field.HR professionalPay bands and career paths should be planned with the pricing of AI skills in mind.managerDesigning roles that strengthen human skills can provide a competitive advantage.survey · United StatesApollo: AI use is slowing wage growth for 5.8 million US workers
Apollo Global Management analysed data on 321 US occupations to assess the early wage and employment effects of AI (3 August). According to the report, wage growth is reduced by 6.7 percent for 5.8…
employeeThe wage effect does not come only through job losses, so it is worth showing AI-added value in pay negotiations.HR professionalIn pay data, AI exposure should be examined occupation by occupation.Hungary
surveyShadow AI spreading in Hungarian workplaces, business secrets could leakmanagerApproved AI tools and a data-handling policy must be provided, otherwise employees will choose their own.HR professionalAn AI-use policy and training are needed to protect confidential data.SME ownerSmall businesses, too, must set out what data may be entered into AI tools.skillsAI skills to become a baseline requirement in most jobs within two yearsemployeeIt is worth building AI tools into daily work now and documenting it.HR professionalJob advertisements and training plans need to be prepared for AI expectations.job seekerA lack of AI skills can be a disadvantage; it is worth getting a course and a practical example.recruitmentAI has reshaped the competition for IT professionals; 80% of job roles already affectedemployeeMuch of the job is affected, so employees should prepare for tasks to be reshuffled.HR professionalIn IT recruitment the sought-after profiles are changing, and hiring criteria need to be updated.job seekerIn the IT market, AI skills are reshaping demand.skillsHungarian expert: study occupations and human skills that AI can hardly replacejob seekerWhen choosing what to learn, it is worth building on human skills that are hard to hand over to AI.early-career professionalWhen choosing a career, consider the risk of replacement and occupations that AI can complement.surveyTax advisers work 40,000 more hours thanks to AIemployeeIn professional services, AI can expand capacity without necessarily cutting headcount.managerAI gains can be measured as capacity, not only as cost reduction.toolPerformance-based pay rises spread, with AI gaining a role in pay decisionsHR professionalIn AI-supported pay decisions, transparent criteria and human review must be ensured.employeeWith performance-based pay, it is worth clarifying the measurement criteria.surveyHR Portál: HR leaders say companies are not yet ready for AIHR professionalAssessing organisational readiness is an essential first step before introducing AI.managerBefore rolling out the technology, it is worth assessing the state of skills and processes.surveyAI-driven labour segmentation could create a permanent underclass of workersemployeeA lack of AI skills can cause lasting disadvantage, so taking part in training matters.HR professionalEqual access to training could reduce the risk of a two-tier labour market.platform changeLinkedIn moves against AI-generated contentjob seekerPay attention to the authenticity of your profile and applications; mass-produced AI text can be a disadvantage.HR professionalFiltering AI-generated junk on the platform may change how candidates are searched for.
More key stories of the week
skills · United States
Junior coding and entry-level jobs vanish with AI, damaging the career ladder
Forbes (9 August) and other early-August reports say opportunities for juniors are narrowing because AI is taking over the tasks that provide learning. The analyses say employment among…
early-career professionalWith the core tasks gone, practical experience has to be made up through mentored projects.managerLearning tasks must be deliberately left for juniors, otherwise the future senior talent pipeline suffers.HR professionalGraduate programmes need to be redesigned, not just cut in headcount.case · United StatesMobley v. Workday: lawsuit claims AI screening can filter out older and minority applicants
A lawsuit against Workday, now in the court phase, alleges that its AI-based applicant screening may have discriminated against applicants on the basis of age, race and disability (3 August). The…
HR professionalFor ATS and AI screening tools, ask the vendor for bias tests and the audit log.job seekerIf rejected, challenging the automated screening can be a legal option.50+/seniorThe case on the risk of age-based screening reinforces that the disadvantage faced by older applicants can be contested.managerUsing a tool vendor does not relieve the employer of responsibility.survey · globalSurvey: 59% of managers ask AI whom to lay off
Between 4 and 9 August, Hungarian outlets reported that 59 percent of managers use AI to decide whom to dismiss. AI support for dismissal decisions is increasingly common outside the EU, mainly in…
managerAn AI recommendation must not be the sole basis for a layoff; a human, justifiable decision is required.HR professionalA policy is needed on when and with what data AI may be used for evaluation and layoffs.employeeIn a layoff you have the right to a justification, and AI-based selection can be contested.case · United StatesOpenAI pays $3.2 million to settle US inquiry into discrimination against American workers
OpenAI will pay $3.2 million to close a US investigation into its hiring of foreign workers and alleged discrimination against American workers (Reuters, Politico, 4 August). The case examines the…
HR professionalWhen hiring foreign workers, job advertising and selection processes should also be audited from a legal perspective.managerEmploying foreign workers does not exempt an employer from the duty to treat local workers equally.agency · United StatesAI agents in HR: from customer service to military HR, while many firms stay stuck in pilots
Materials of 4–5 August say an AI agent can understand an employee's question, retrieve authorised information and start a process. The US Army's human resources command uses Agentforce to serve 9.2…
HR professionalIn HR support, agents take over routine queries, so professionals should focus on exception handling and oversight.managerMoving from pilots to live operation requires defined processes and accountability.layoffs · globalTech layoffs: more than 163,000 jobs cut in 2026, with Microsoft eliminating 4,800 roles
Several reports in early August put the sector's layoff rate at a 20-year high, with Oracle and Microsoft contributing. The reports say more than 163,000 tech jobs were cut in 2026, and Microsoft…
employeeWith layoff rates near record levels at tech companies, it is worth keeping a financial reserve and a portfolio that employers can find.job seekerMore laid-off candidates are entering the tech market, so competition is growing.recruitment · United KingdomIndeed: UK hiring falls, but job ads seeking AI skills keep rising
Indeed's UK data (3 August) show subdued hiring demand in knowledge work, while the number of ads mentioning AI or AI tools is rising strongly. The report says software job postings rose 14 percent…
job seekerIn a shrinking market, hands-on knowledge of AI tools can be a strong selling point in an application.HR professionalAI requirements are spreading quickly in job ads, so it is worth defining precisely what they mean for a given role.managerWith subdued demand, competition for AI-capable candidates is sharpening in a narrow segment.layoffs · United StatesAI-washing: some layoffs are blamed on AI, and many firms regret cuts and rehire
A White House advisor said on August 6 that companies cite AI for layoffs because it "plays better in the press". Other reports say a significant share of companies regretted AI-driven layoffs and…
managerRapid AI-based headcount cuts can bring rehiring costs, so it is worth measuring how automatable the tasks really are.HR professionalBecause of rehiring, preserving the knowledge of laid-off staff and keeping a recall list are also useful.employeeAn AI-based justification is not necessarily the real reason, so it is worth asking for the rationale.surveyWhite-collar hiring rises 5% in July as AI-related jobs surge 33%
White-collar hiring grew 5 percent in July, according to a report published on 3 August. The number of AI-related jobs rose 33 percent.
job seekerDemand for AI-related roles is growing fast, so relevant skills are worth highlighting on a CV.HR professionalCompetition for AI profiles is intensifying, so search criteria and pay bands should be reviewed.recruitment · globalFake AI job candidates pass interviews and vanish; Deel buys deepfake-defense startup Clarity
Arena's CEO said on August 4 that AI-generated fake candidates pass job interviews and then vanish. Deel bought the deepfake-defense startup Clarity in response, and other employers are introducing…
HR professionalRemote hiring needs identity verification and a live, verified interview step.SME ownerVerify identity before starting payroll, because fake-candidate fraud also affects smaller companies.job seekerGenuine candidates should expect stricter identity checks.survey · AsiaEntry-level software jobs in Pakistan fall 25% because of AI
According to an Arab News report of 7 August, junior positions in Pakistan's software industry have fallen by 25 percent. The reports name AI as the cause of the disappearance of junior tech jobs.
early-career professionalEntering software as a junior is getting harder, so it is worth building on demonstrable projects done with AI tools.managerAlongside AI replacing junior staff, decisions are needed on retaining the future senior talent pipeline.layoffs · United StatesLayoffs hit San Francisco's largest employer as tech giant replaces workers with AI
An August 7 report says layoffs are under way at San Francisco's largest employer, which is replacing staff with AI. The article presents the tech giant's move as an example.
employeeAt large companies, AI replacement already means actual headcount cuts, so it is worth strengthening the parts of your role that AI cannot easily take over.In brief
surveyPolls: nearly half of Americans use AI at work, but most expect work to get worseemployeeAI use at work is widespread, and shifting tasks from colleagues to AI is redrawing roles.managerThe trust gap has to be addressed: without quick, transparent rules, AI rollouts will meet resistance.HR professionalCommunication around rollouts has to answer questions about job security.skillsAARP: workers over 40 drive most AI decisions, but only 12% have had AI training50+/seniorTaking part in AI training improves job retention, so older workers should actively seek training.HR professionalTraining programmes need to target older workers explicitly.managerSupporting experienced staff in using AI helps preserve their value.recruitmentAI infrastructure build-out drives demand for trades, with electricians offered up to $280,000job seekerSkilled-trade careers can offer high pay because of the AI build-out, so vocational training is worth considering.early-career professionalPhysical trades that do not require a degree are an attractive alternative.HR professionalWage competition for skilled trades is intensifying, and recruitment channels need to be widened.surveySouth Korea's youth unemployment deepens as AI and shrinking entry-level jobs weighearly-career professionalEntry-level positions are shrinking, so internships and project-based experience become more valuable.HR professionalWhen designing graduate programmes, the onboarding path needs rethinking because routine tasks are being automated.recruitmentBBC: AI recruitment tools lead women to 'Botox' their CVsjob seekerAdapt your CV to the expectations of automated filters, but also be aware of the risk of bias.HR professionalScreening tools should be checked for bias by gender as well.skillsIKEA retrains 8,500 call centre staff as AI bot Billie takes over routine queriesemployeeCustomer service roles can move towards advisory tasks through retraining.HR professionalThe cost and impact of retraining as an alternative should be compared with those of layoffs.managerHanding routine work to AI can raise the value of human work if the role is changed deliberately.regulationAI employee monitoring creates high-risk HR data environment; Nissan uses AI cameras in factoryemployeeFor movement- and performance-tracking systems, workers have a right to be informed, and it is worth requesting the policy.HR professionalA data protection impact assessment and purpose limitation for monitoring are essential.caseAI increasingly cited in UK dismissal cases as AI-generated claims swamp employment tribunalsHR professionalIn disputes, an employer citing AI as the reason should be prepared with documented and verified background.employeeAn AI-written filing may contain errors, so a legal check is advisable.caseLawsuit challenges Meta's use of AI in layoff decisionsHR professionalIn layoffs, selection criteria should be documented and decisions left open to human justification.employeeWhen dismissed, you can request the reasoning behind the selection if an algorithm was involved.survey1.5 million Australian workers trust AI over their managers; tribunal restricts AI-written complaintsmanagerThe trust deficit signals that managers' feedback and communication need to improve.employeeAI-written complaints can contain errors or exaggeration, so manual checking is needed.HR professionalWhere complaint handling relies on AI, the quality and credibility of the text should be checked.layoffsEtsy cuts 12% of staff and Salesforce 133 more jobs, neither citing AIHR professionalLayoff communications should state the reason precisely, because an AI explanation may not hold up.surveyEconomists: AI will not sweep away white-collar jobsemployeeRearranged tasks are a likelier scenario than mass replacement, so it is worth shaping your task mix.managerCost matters: AI costs should be compared with the price of human labour.surveyIndia records 83,100 AI-related hires against 31,921 layoffs and exitsjob seekerAI-related hiring shows net growth, so retraining can pay off.HR professionalCompetition for AI-role recruitment is fierce, while hiring is shrinking elsewhere.toolAI helps people with criminal records find work in the United Statesjob seekerAI tools that address record-related barriers can help with job searching and with identifying expungement options.HR professionalRethinking record-based screening can widen the candidate pool.layoffsChime cuts 10% of its workforce and ServiceNow cuts 300 jobs as both realign around AIemployeeAt fintech and software companies, AI-linked restructuring moves quickly, so it is worth expanding the AI-assisted part of your role.HR professionalCommunications should distinguish genuine AI automation from cost cutting.surveyTemple study: remote work, rather than AI, may be hurting young job seekersearly-career professionalDifficulty getting in has several causes, so in-person presence and networking also matter.HR professionalGraduate recruitment should not be explained by AI impact alone.regulationConnecticut passes new AI law, New Jersey issues discrimination guidance for employersHR professionalUnder US state rules, algorithmic hiring tools must be audited for discrimination.managerUsing AI tools does not shield an employer from discrimination liability.recruitmentAI interviews and avatars appear in hiring; Greenhouse CEO says the résumé may become obsoleteHR professionalBefore introducing AI interviews, candidates must be informed and the process checked for bias.job seekerWhen preparing for an AI interview, practise giving short, structured answers.caseGrindr CEO says AI is doing the work of 200 additional engineersmanagerHeadcount 'not hired' may be a way to measure AI's contribution, but the underlying assumption should be checked.early-career professionalRather than growing engineering demand, AI substitution may show up in hiring plans.regulationIreland's AI Office warns employers on staff AI trainingHR professionalAI literacy training should be delivered through a documented plan.managerEmployees expect transparency about the use of AI.regulationChina's AI drive threatens the world's largest workforce, but Beijing wants jobs protectedmanagerIn the Chinese market, employment considerations in AI adoption may become a regulatory expectation.caseMicrosoft moves to limit its own employees' use of AIHR professionalThe AI usage policy also needs to be aligned with cost and risk management.employeeAI use at work can be restricted, so employees need to know the policy.surveyGartner: 95% of HR leaders use AI, but only one in five has seen significant resultsHR professionalAI training should also be planned for newly emerging roles, and its results measured.managerThe ROI of AI adoption needs to be measured, because usage does not equal impact.surveyHow AI is changing jobs in the Philippines' outsourcing industryemployeeCustomer service and back-office roles are being changed by AI, so retraining matters.managerOutsourced processes can be reorganised with AI, which also affects contracts.recruitmentSaudi employers embrace AI hiring, but trust emerges as the next challengeHR professionalIn AI recruitment, candidates' trust has to be built through a transparent process.job seekerAI screening is becoming widespread; it is worth asking for transparency about the process.surveyGoogle ATLAS: workplace AI use is 'broad but shallow'managerThe task is to deepen existing wide use, not to add more tools.employeeWith usage still shallow, integrating AI more deeply into workflows offers an advantage.toolEuropean Commission weighs replacing US technology in new recruitment tool with European optionHR professionalWhen choosing a recruitment tool, consider where data is stored and where the vendor originates.surveyJob-loss risk from AI is higher in wealthier countriesemployeeExposure is higher in advanced economies, so skills development is needed sooner.