Just a few years ago, securing a job in the tech industry seemed almost a given for individuals with relevant skills. Before the pandemic, the sector thrived on booming startups, abundant venture capital in Silicon Valley, and robust hiring of junior developers, designers, and data analysts, including recent bootcamp graduates. The onset of the pandemic further accelerated demand as businesses rushed to digitize, creating even more remote opportunities nationwide. However, this momentum has since slowed dramatically. The tech sector has witnessed sweeping layoffs, tighter hiring practices, and a fundamental shift driven by the rise of artificial intelligence (AI).

AI’s presence in the workplace is not new—automation has shaped factories for decades—but the advent of generative AI tools like ChatGPT and automated code generators represents a turning point for knowledge workers, especially those in entry-level positions. These tools can now produce code, marketing content, legal documents, and design elements instantly, automating many tasks once considered uniquely human. According to a 2023 McKinsey report, AI could automate 60–70% of the time spent on tasks across various jobs, notably in customer service, legal, finance, and administrative roles. Conversely, sectors like healthcare, STEM, and creative tech are projected to see growth, driven by AI-enabled innovation.

The World Economic Forum projects that by 2027, automation could displace 83 million jobs globally while creating 69 million new roles, many demanding new skill sets. Pew Research data suggests a disconnect between workers’ general awareness of AI’s impact and their own perceived risk, with many underestimating personal vulnerability to job disruption. Some economists maintain a cautiously optimistic view, proposing that AI will augment rather than replace roles, especially those requiring complex human judgment or interpersonal skills. Yet, the divide between automatable routine work and roles needing adaptability and creativity is widening, challenging both workers and employers to respond swiftly.

In practice, this transformation is already reshaping workforce pathways. Lisa Countryman-Quiroz, CEO of the San Francisco nonprofit Jewish Vocational Service (JVS), notes a significant contraction in entry-level tech roles. Programs targeting frontline IT support and tech sales, once reliable entry points into technology careers, are being phased out due to automation. The pandemic-era hiring optimism has given way to cost-cutting measures, with many companies prioritizing AI-driven solutions across both technical and administrative functions. This transition hits hardest on young workers and those without formal degrees, who face fiercer competition from experienced tech layoffs and government workers re-entering the market. Countryman-Quiroz emphasizes the urgent need for investment in upskilling and retraining initiatives to prevent widening economic disparities.

Technical professionals echo these observations. San Jose full-stack engineer Prathma Rastogi describes the rapid integration of AI tools like GitHub Copilot and ChatGPT within engineering teams, particularly automating basic coding and testing tasks. This evolution demands continuous learning and adaptation, as developers increasingly focus on high-level solution design, product strategy, ethical decision-making, and human-centred design—areas AI currently cannot replicate. Rastogi advocates for employer-led reskilling programs supplemented by government grants to empower workers rather than marginalize them amid technological upheaval.

The effects extend beyond software development, as evidenced by Marco Sciorelli, an engineering professional in San Jose, who points to AI-driven job creation in sectors supporting the explosion of data centres and infrastructure powering these technologies. Roles for electricians, mechanical contractors, and utility technicians are in demand, offsetting some losses elsewhere. However, in his experience, routine tech support was among the first functions to be automated internally following COVID-19, reflecting a broader trend of labour cost reduction. Sciorelli advises workers to cultivate skills in strategic thinking and creativity to complement AI capabilities.

Local initiatives further illustrate proactive adaptation efforts. San Jose’s recent AI Upskilling Program for city employees, conducted with San Jose State University, reportedly saved significant staff hours and departmental consulting costs by training workers to develop AI-assisted tools. Silicon Valley educational institutions and industry groups have also launched credential programs in AI-related fields, including prompt engineering and AI ethics. These emerging roles often command competitive salaries and are increasingly accessible without traditional tech degrees, highlighting a shift toward skills-based hiring models.

On the national front, companies like OpenAI plan to launch new AI-powered job platforms and certification programs aiming to equip millions of Americans with AI competencies over the coming years, signalling a significant shift in workforce development and recruitment strategies toward AI literacy.

Despite these opportunities, the landscape remains fraught with anxiety and uncertainty. Reports indicate a marked 25% drop in hiring of recent graduates by major tech firms such as Meta, Microsoft, and Google, with AI cited as a principal factor in automating routine entry-level tasks. Some experts warn of deeper displacement ahead. Geoffrey Hinton, known as the "Godfather of AI," predicts mass unemployment driven by corporate profit motives enabled by AI, while others like Anthropic’s CEO foresee up to half of all entry-level white-collar jobs disappearing within five years. These warnings underscore the necessity for robust societal responses, including regulatory safeguards and equitable training programs.

Conversely, data from the Federal Reserve Bank of New York suggest that, so far, AI’s impact on employment has been more nuanced, often leading to retraining rather than widespread layoffs. Nonetheless, firms are preparing for potential future disruptions with more cautious hiring and workforce planning.

The rising anxiety among workers across industries, fuelled by rapid AI adoption amid broader economic instability, is palpable. Behavioral scientists highlight how this unease reflects fears over job security and personal value, prompting some employees to exaggerate AI skills or covertly use AI tools. Mental health experts see potential for this anxiety to motivate positive adaptation, such as reskilling and career pivots, but stress the importance of ensuring workers have agency in shaping their futures in an AI-enabled economy.

Ultimately, while AI is remaking the labour market—displacing some roles yet generating others—its net impact will hinge largely on coordinated efforts by business leaders, policymakers, educators, and workers to foster inclusive, forward-looking workforce development. The coming years will challenge the myth of a straightforward tech career path and demand a focus on adaptability, continuous learning, and human-centred skills that machines cannot easily replicate. How society manages this transition will determine whether AI deepens inequality or drives broad-based economic growth.

📌 Reference Map:

Source: Noah Wire Services