AI Isn’t Killing Jobs — It’s Creating Better-Paid Ones

A Shift in the Narrative 

The anxiety around artificial intelligence (AI) and automation has long centered on job loss. Headlines have sounded alarms about robots replacing human workers, entire industries becoming obsolete, and a “future of work” that leaves the majority behind. The headcount flattening and massive layoff announcements have so far been perceived positively in 2025 among the investment community and it is hard to say if CEOs prepare for tougher economic days ahead or have started trusting AI with entry-level tasks and already see efficiency. Maybe both apply to their reasoning. But data from IBM and other global analysts tell a different story, one that reframes AI not as a destroyer of opportunity, but as an engine for higher-value, better-paid jobs requiring different skills. 

According to a recent IBM Institute for Business Value report, 40% of the workforce will need reskilling in the next three years due to the rise of AI and automation. However, rather than leading to mass layoffs, these shifts have the potential to solve for the labor shortage of many industries and also to reposition talent toward roles that require more strategic, creative, and analytical capabilities. Roles that involve accountability on larger scopes and therefore command higher wages and stronger career trajectories. 

The conclusion is clear: AI isn’t killing jobs. It’s killing bad jobs and in doing so, it’s enabling new tiers of human potential to emerge. 

Replacing Repetition with Purpose 

Historically, technological shifts have replaced many job categories already. In particular, those built on repetitive, rules-based tasks and where output can be clearly measured. But each time, new categories emerged, increasing standards, demanding different skills and offering new value. AI is following this exact trajectory but it’s the sheer magnitude of its impact that is unprecedented and scary to many. 

Roles rooted in routine such as data entry, scheduling, document processing, digital asset production, software programming are no longer just augmented with technology, now they are being offloaded to intelligent systems. In turn, this opens space for more rewarding human contributions: deepening research, sharpening decision-making, favoring customer experience, accelerating product innovation, and nurturing the building of relationships. 

A study by the Nielsen Norman Group found that when AI tools were introduced to support customer service representatives, the volume of cases resolved per hour increased by 13.8%, and overall customer satisfaction improved in tandem. The human agent didn’t disappear; they leveled up and the need to create entry-level positions shrunk. 

The Rise of the “AI-Augmented Worker” 

What we’re seeing now is a new class of knowledge professional: the AI-augmented worker. This isn’t a person competing against machines, but someone operating with them and using AI to make better decisions, reduce errors, move faster, and produce at a level that would have been impossible even three years ago. 

In software engineering, for instance, programmers working with AI copilots (like GitHub Copilot, Codex or Cursor) are writing 126% more code per week than those working without them. Designers use AI to accelerate prototyping. Analysts use it to surface insights across massive data sets. Marketers use it to generate campaigns, test messaging, and optimize results on the fly. 

The job isn’t being replaced. It’s being reframed and the skills that matter now are prompt design, problem-solving, ethical judgment, communication, and systems thinking. 

The Wage Effect: More Skills, More Pay 

When tasks are augmented by AI, the demand shifts toward higher-order thinking. And when the labor market shifts toward skills in analysis, synthesis, creativity, and collaboration, wages follow. The increase in volume and value of output by appropriately skilled workers is having an impact on their compensation. 

A 2023 study from the Oxford Internet Institute found that workers with in-demand AI skills earn on average 21 percent more, with certain high-value skills, such as machine learning and TensorFlow, commanding wage premiums of up to 40 percent. These wage effects align with the rising demand for emerging hybrid roles in AI-enabled organizations, including “AI Product Manager,” “Human-AI Interaction Designer,” “AI Ethics Officer,” “AI-First Software Developer,” and “Automation Strategist.” 

Furthermore, IBM’s research shows that 87% of executives now believe job roles are more likely to be augmented than replaced—and that AI will add value to people rather than extract it from them. 

The logic is simple: when AI removes the low-leverage parts of a job, the remaining value of the human contribution becomes more visible, measurable, and profitable. 

Reskilling: The Bridge Between Disruption and Opportunity 

The real question isn’t whether AI will change jobs. It’s whether we’re doing everything we can to prepare people to step into the new ones. 

Companies like IBM, Microsoft, and Google are investing billions in reskilling initiatives. Even governments are stepping in. The European Union has designated 2023–2030 as the “Digital Skills Decade,” aiming to train 20 million tech professionals by 2030. 

Still, the most effective efforts often come from hybrid training models. Ones that blend hands-on experience, real-world projects, and immersion in latest tech stacks.  

That’s the true promise of AI: not eliminating work, but radically expanding who gets to participate in it. 

Who’s at Risk and Who’s Ready? 

Of course, not every job transitions smoothly. The risk of displacement is real, especially for those in legacy systems that haven’t adapted their workforce strategies. 

But this is not a doomsday scenario. It’s a wake-up call. 

The World Economic Forum’s Future of Jobs report estimates that while 85 million jobs may be displaced by automation globally by the end of 2025, 97 million new roles will be created that are more adapted to the new division of labor between humans, machines, and algorithms. 

The key differentiator will be mindset. Organizations that cultivate adaptability, digital literacy, and continuous learning will outpace those clinging to outdated structures. 

The Danger of a “Job Count” Obsession 

Measuring AI’s impact solely by “number of jobs gained or lost” is a shallow view of economic evolution. It ignores two more meaningful metrics: job quality and job multiplicity. 

Job quality refers to compensation, autonomy, potential for impact, skill utilization, and alignment with purpose. AI is helping redefine work along these lines. A single individual augmented by intelligent systems can now wear multiple hats as marketer, analyst, strategist, product manager and contribute across multiple layers of an organization. 

As MIT economist David Autor once said, “AI doesn’t replace jobs; it replaces tasks. And in doing so, it reshapes the job itself.” 

Human Advantage, Reclaimed 

For too long, our reflex toward breakthrough innovation has been to make humans compete with machines on aspects of the job description and measure speed, repetition, productivity and precision. But as AGI gets closer, our greatest value remains in what only humans can bring: consciousness, accountability, emotional intelligence, ethics, imagination, impulse, inspiration and empathy. 

AI isn’t erasing those capabilities, it’s amplifying their effect when prompted with mastery. 

If machines can automate the grunt work we do, it frees us to focus more on why we do it, what makes it special and important and who we’re doing it for. That’s the kind of evolution that preserves valuable jobs and dignity by extension.  

Final Thought: A Call to Action 

We already entered a pivotal moment in the history of work. The question is no longer whether AI will shape the labor market but rather whether we will shape AI’s integration into that market responsibly, equitably and while avoiding leaving too many people behind. 

Companies need to build AI fluency at all levels. Workers need to see themselves not as displaced, but as repositioned. Policymakers need to stop asking “How do we stop job loss?” and start asking “How do we expand access to better jobs for more people?” 

Because the near future of work is not less human it’s more human, powered by intelligent machines that allow us to show up more fully, creatively, and consciously. 

And that future? It pays better.