Issue 11
IMF chief warns AI is hitting jobs like a slow-moving tsunami
IMF Managing Director Kristalina Georgieva warned on 12 October that AI could wipe out jobs like a slow-moving tsunami. The IMF says about 40% of jobs worldwide will be affected, with entry-level positions and governments' tax revenues also at risk.
Who is affected and how
- early-career professional
- First jobs may become scarcer, so it is worth building AI skills and project work into your CV now.
- employee
- Assess how exposed your role is to AI and ask your employer for targeted retraining.
- HR professional
- Workforce and training budget planning must allow for the transformation of entry-level positions.
- manager
- Map the AI exposure of your team's tasks before making headcount decisions.
Nearly 200,000 US job cuts since 2023 have cited AI, report says
A report says nearly 200,000 US job cuts since 2023 have cited AI. Reuters is tracking more than 20 companies that have cut jobs citing AI, including Microsoft and Kroger.
employeeJob cuts citing AI point to a widening trend, so review your own position's exposure regularly.HR professionalCiting AI as the reason for layoffs is a communication and legal risk, so you must be able to show that AI is actually the cause.skills · globalAI erodes entry-level jobs, leaving HR to rebuild the talent pipeline
Surveys show 37% of recruiters already see falling entry-level demand because of AI. Singapore's president has also warned graduates, and HR leaders will need to rebuild the talent pipeline.
early-career professionalShow business judgement and automation skills, as the new entry-level roles are built on them.HR professionalIf AI takes over entry-level tasks, secure the supply of future senior staff through internships and mentoring programmes.managerEliminating entry-level positions could create an experience gap in the senior ranks within ten years.regulation · European UnionECB's Lane: AI may weaken euro zone workers' bargaining power
ECB Chief Economist Philip Lane said corporate use of AI could curb workers' wage demands. Reuters reports that heavy investment could also tighten financing conditions.
employeeStronger arguments are needed in pay negotiations: measurable performance and the added value created with AI.HR professionalPlan pay bands and the pay-rise budget with easing wage pressure in mind, which also creates a retention risk.managerEasing wage pressure does not remove the retention risk, so key staff need a separate strategy.survey · globalPwC: AI is splitting the labour market, and most workers are left without training
A PwC survey finds that daily AI users are more confident, while access to training is shrinking for most workers. Hungarian reports say AI use is rising but employees are receiving less and less…
HR professionalAI training must be extended to everyone, not only to those already using AI.employeeIf the employer provides no training, workers who do not learn on their own initiative risk falling behind.managerIntroducing AI without training produces teams that move at two speeds.Hungary
More key stories of the week
US AI hiring laws and discrimination liability in vendor contracts
A summary reviews the impact of NYC Local Law 144, Illinois HB 3773, Colorado SB 26-189 and California's ADS rules. Analyses say AI tools trained on historical data can repeat bias, so the allocation…
HR professionalPay particular attention to audits of hiring AI tools and to contractual allocation of liability.SME ownerUsing an external recruiting tool does not remove the employer's discrimination liability.survey · global78% of managers used AI in performance reviews; only 16% of employees were told
A survey found that 78% of managers used AI in performance reviews, but only 16% of employees were informed. A Hungarian report says workers fear machine-based evaluation and that AI may also hold…
HR professionalEmployees must be told about AI used in reviews, and human review must be available.managerYou must be able to explain the rationale for an AI-assisted review to the employee.employeeIt is reasonable to ask your employer to disclose whether AI is used in your review.layoffs · United StatesKroger to cut 3,000 corporate jobs over three years as it expands AI use
Kroger will lay off 3,000 corporate (office) employees over three years while expanding its use of AI. Several outlets reported the news on 12–13 October.
employeeStaff in back-office support functions should assess which of their tasks can be automated and align skills development accordingly.HR professionalCommunicating multi-year layoffs and planning retraining or redeployment options is important from now on.case · globalAI agent interviews with AI recruiter: bots stuck in loop, $150K salary negotiation falls to $60K
A candidate sent their own AI agent to an interview with an AI recruiter, and the two bots got stuck in a loop of goodbyes. According to Cybernews, the $150K salary negotiation dropped to a $60K…
HR professionalIn bot-to-bot interactions with no human involved, salary negotiation and the decision must be confirmed by human review.job seekerDo not leave salary negotiation entirely to a bot, as the loss can be serious without oversight.SME ownerAutomated interviews should be used only with human oversight, otherwise a good candidate may be lost.skills · globalJob ads increasingly name AI skills: Claude, ChatGPT and the 'AI stack'
In Korean job postings Claude is the fastest-growing AI skill, and ads naming ChatGPT and Claude are multiplying. According to Dice, tech job postings grew 17% year on year in September, while New…
job seekerBe ready for the 'AI stack' question: candidates should be able to name specific tools and workflows.HR professionalRecruiters also need to be able to assess the real level of a candidate's AI skills.employeeJudging by the ads, familiarity with tools is a measurable competitive advantage.recruitment · globalMcKinsey makes job applicants debate an AI client in interviews
McKinsey requires job applicants to debate an AI client, Lilli, as part of the interview. The news was reported on 14–16 October.
job seekerPractise debating AI and solving cases with it separately, because assessment is taking a new form.early-career professionalBuild arguing with an AI partner into your preparation for consulting interviews.HR professionalAI is now used not only for screening but also for assessing candidates' skills.recruitment · United StatesUS startup's AI avatar passes as human in job interview test, fooling 48% of participants
A US startup says its AI avatar convinced 48% of test participants that it was a real person. Fortune reports that candidates may send an AI twin to the first interview, and according to Eightfold…
HR professionalInterviews need new verification steps, such as confirming identity and live presence.job seekerUsing an AI avatar carries ethical and legal risks, and the employer may find out.survey · globalWorkers want to use more AI but fear being replaced
According to Cognizant, 80% of employees would use more AI than their jobs allow. A survey found that a third of younger workers fear AI could soon do their job better than they can, and workers who…
managerFit AI tools to workflows, and communicate openly about job security.HR professionalFear worsens behaviour, so AI training and honest communication are needed.employeeTell your manager about specific AI needs.survey · AsiaIMF: job demand in AI-exposed occupations in Asia falls by nearly 10%
An IMF report on Asia finds that job demand in AI-exposed occupations falls by roughly 10%. The data show demand for AI skills is twice as high in the same jobs, and AI puts 3.9% of office jobs at…
employeeIn an AI-exposed role, AI skills can mean both protection and a wage premium, so it is worth developing them deliberately.job seekerJob ads increasingly expect AI skills; demonstrate them in your CV and at the interview.HR professionalFor exposed roles, build AI skills into the position profile from the start.tool · globalWorkday introduces autonomous AI agents for HR, payroll and finance
Workday announced new AI agents for routine work in recruiting, payroll, accounting and IT onboarding. On October 13, its Trusted Agent Platform also gained headless access to HR and finance data.
HR professionalRoutine HR processes such as payroll and hiring administration are being automated, so the focus should shift to oversight and exception handling.managerBefore deploying agents, clarify accountability and data-handling rules.case · United StatesJunior jobs shrink at Anthropic as AI agents work six times more hours
Reports say Anthropic nearly stopped hiring juniors because its AI agents work six times more hours. Anthropic employees say AI could take over 75% of their work by 2030.
early-career professionalJunior positions at AI developers are shrinking, so entry requires distinctive skills.managerRedesign your team's junior-to-senior ratio with agents in mind.employeeThe pace at which tasks are taken over among developers may be a guide for other professions.survey · globalAI-polished CVs are recruiters' top stressor
An Employ report says AI-polished CVs stress nearly three-quarters of HR staff, and recruitment budgets are also changing. Recruiters find people faster with AI, but confidence in candidates has not…
HR professionalCandidates' real skills should be verified with work samples or practical tasks, not just CVs.job seekerA CV alone is not enough; concrete results and evidence should come first.