The hard truth about AI and the future of work

In recent years, AI has transformed from a futuristic concept to an undeniable force reshaping our workplaces. But as it continues to advance, the implications stretch far beyond convenience and efficiency. AI is set to redefine job roles, challenge traditional career paths, and disrupt entire industries. This isn’t just a story of automation; it’s about a fundamental shift in how we work, the skills we need, and the very purpose of human roles in business. As we stand at the cusp of this AI-driven revolution, here are some hard truths about what the future holds for workers, companies, and the nature of work itself.

The hard truth about AI and the future of work

1. Fewer traditional jobs

AI will not just automate repetitive tasks. It’s moving up the chain, performing tasks traditionally done by knowledge workers—writing, design, coding, customer service, and even management-level decision-making. This means that in the not too distant future fewer jobs will exist overall for humans, particularly in areas like administrative work, analysis, and even creative industries. We’re already seeing entire departments (think customer support or data entry) getting cut because AI can do those jobs at a fraction of the cost.

Reality check: There won’t be enough high-skill jobs to replace the lower-skill ones that vanish. The idea that workers can just “reskill” for AI-era jobs is overly optimistic. Not everyone can or wants to become a programmer or robot polishing data scientist.

2. The rise of “hyper-specialised” human work

AI will handle the generalist roles better than humans, so the future of human work will lean heavily towards more niche expertise. Human workers who thrive will be those who either:

  • Have deep, specialised knowledge in areas AI can’t fully replicate (for now), such as high-level strategy, ethical decision-making, or complex relationship-building.
  • Possess physical or creative skills that aren’t fully replicable by AI (yet), though this window is shrinking fast (such as plasterers, builders etc).

Reality check: The middle ground will collapse. Either you have extremely specialised skills, or your job will be at risk of automation. Companies will be much leaner, hiring fewer employees but with more specialised talent.

3. Gig economy on steroids

Full-time employment will give way to gig and contract work even more than it has now. Many companies will maintain a small core of essential staff while outsourcing tasks to freelancers or AI-enhanced platforms for cost efficiency. Even high-skill workers will find themselves navigating a patchwork of short-term contracts, juggling multiple clients, and constantly re-skilling to stay relevant.

Reality check: Job security and long-term careers will become rare, with far more workers facing precarious employment.

4. Massive inequality in the workforce

The divide between AI-driven companies and those still relying on traditional methods will lead to a sharp divide in economic outcomes. Companies that effectively leverage AI will be leaner, more profitable, and require fewer workers. Companies that fail to adopt AI will either fall behind or be forced to merge or close. The workers left behind in low-skill, AI-vulnerable jobs will struggle, contributing to economic inequality.

Reality check: The gap between high-skill, high-pay jobs and everyone else will widen. Universal Basic Income (UBI) might become a real consideration in many countries to address the fallout.

5. Restructured corporate hierarchies

With AI able to automate large swaths of decision-making, traditional middle management will erode. AI tools will handle many of the operational and analytical functions, freeing senior leadership to focus on vision and strategic direction while fewer human managers will oversee day-to-day operations.

Reality check: Management jobs are also at risk. Fewer people will oversee larger teams (or AI-run systems), and traditional career paths in corporations will no longer be linear.

6. Ethical and societal challenges

Companies will face significant ethical dilemmas over how much of their workforce they are willing to replace with AI. Those that push boundaries too far may face backlash from consumers or regulators, but this will likely come after significant workforce reductions have already happened.

Reality check: Many companies will automate aggressively, pushing regulatory responses only once the social impacts are too large to ignore.

7. AI will set the pace, not humans

AI won’t just be a tool to support human work, but will drive the tempo and strategy of businesses. We’ll see companies using AI to analyse market trends, innovate product development, and even decide on business strategies. Humans may guide these processes, but increasingly they’ll be following decisions suggested by algorithms. Eventually we will reach a point where many companies will run themselves (or at least the AI will) with minimal human intervention. 

Reality check: Companies that fully embrace AI will outpace those that don’t. This will lead to AI-driven monopolies in certain industries, and many smaller businesses simply won’t be able to compete.

8. Mental health challenges

As AI takes over more and more tasks, there’s a serious risk of humans facing mental health crises related to identity and purpose. For a number of people, work provides structure, meaning, and social interaction. The displacement of jobs by AI will strip a lot of this away, particularly for those who are unable to transition to new roles or industries.

Reality check: The psychological toll of job displacement will be significant, especially in regions or industries hit hardest by automation.

9. Entire departments will disappear

The rise of AI will make entire corporate departments obsolete, even in traditionally “untouchable” fields like accounting, legal, and HR. AI’s ability to process vast amounts of data, ensure compliance, and even make decisions will make these functions increasingly redundant. Here’s a few ways this could potentially play out:

  • Accounting: AI-powered accounting software can handle bookkeeping, tax filing, audits, and even real-time financial forecasting with near-perfect accuracy. This isn’t just automating data entry—it’s replacing high-level financial analysis and planning. What once took entire accounting teams can be managed by a small AI platform, with maybe a handful of human overseers to make the final judgement calls or deal with complex exceptions.
  • Legal: AI is already capable of drafting contracts, reviewing documents, conducting legal research, and even providing basic legal advice. Companies will no longer need large legal departments when they can rely on AI systems to draft documents, ensure regulatory compliance, and predict legal outcomes with data-backed precision. Only complex litigation and negotiation will require human lawyers, and even then, AI will assist heavily, reducing the need for full-time legal teams.
  • HR: AI can already screen resumes, manage onboarding, conduct employee training, and monitor employee performance and engagement. HR departments will shrink as AI handles recruitment, payroll, compliance, and routine employee queries through chatbots and automated systems. The few human roles left will focus on employee well-being or high-level organisational strategy, but the days of large HR departments are numbered.

Reality check:

  • Accounting and legal departments, often seen as core parts of any business, will shrink dramatically or disappear altogether in their current form.
  • In legal, instead of teams of paralegals or junior attorneys, AI will perform research, due diligence, and even document preparation.
  • In accounting, complex financial management and compliance will be managed with minimal human input, reducing human errors and costs.

The bottom line

Entire functions within companies that require routine, data-heavy tasks like accounting, administration, legal, and HR are no longer safe (along with many others). AI’s ability to process, interpret, and apply vast amounts of information instantly means fewer humans will be needed. What’s left will be small, specialised teams of human supervisors overseeing AI systems, rather than entire departments bustling with staff.

As a result, companies of the future will likely be more lean, heavily automated organisations with far fewer workers across the board.

The future of work with AI isn’t just about jobs changing; it’s about fewer jobs, more specialised human work, and a reorganisation of what companies look like. Companies that embrace AI will be leaner and meaner, but the cost will be fewer humans in the workforce and a greater divide between those who can keep up and those who can’t. For many workers, the future isn’t about evolving alongside AI—it’s about figuring out where they fit in an AI-dominated landscape.

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