Thursday, September 25, 2025

Every Important New Automation Technology Causes Some Job Losses: Get Over It

It is not unusual for enterprise leaders to suggest artificial intelligence will lead to some job losses. In fact, it would be difficult to think of any instances of work automation that have not led to job losses in traditional settings. 


The Industrial Revolution provides some of the most dramatic examples of automation's effects. The invention of the steam engine and mechanized looms displaced countless textile artisans, leading to the Luddite movement where workers protested by destroying machinery. Later, the widespread adoption of the internal combustion engine and tractors decimated agricultural jobs and occupations tied to horses, like blacksmiths and stable hands.


In the 20th century, automated telephone switchboards replaced manual telephone operators, and the introduction of the Automated Teller Machine (ATM) reduced the number of bank tellers needed for routine transactions. More recently, self-service kiosks and online shopping have lessened the demand for cashiers and retail workers.


Technology

Replaced Human Role

How It Replaced the Role

Mechanized Loom

Textile Artisan (Weaver)

Automated the process of weaving, allowing a single machine to produce fabric much faster than a human.

Tractor/Harvester

Agricultural Laborer

Automated the manual and animal-powered tasks of farming, such as plowing and harvesting.

Telephone Switchboard

Telephone Operator

Automated the connection of phone calls, eliminating the need for human operators to manually plug lines.

Automated Teller Machine (ATM)

Bank Teller

Automated routine banking tasks like cash withdrawals and deposits, reducing the need for tellers.

Self-Checkout Kiosk

Cashier/Retail Worker

Automated the process of scanning and paying for goods in a retail environment.

Robotic Assembly Line

Factory Worker

Automated repetitive and dangerous tasks in manufacturing, such as welding and lifting heavy parts.

GPS & Digital Maps

Navigator/Pilot

Automated navigation and route planning, reducing the need for human expertise in these areas.



The new AI at Work Report 2025 published by Indeed suggests that more than a quarter (26 percent) of jobs posted on Indeed in the past year could be “highly” transformed by generative artificial intelligence apps. 


Some 54 percent of jobs are likely to be “moderately” transformed.


The study suggests 46 percent of skills in a typical U.S. job posting are poised for “hybrid transformation.” Human oversight will remain critical when applying these skills, but GenAI can already perform a significant portion of routine work.


As you might guess, software development and other cognitive functions are most likely to be affected, while jobs with high human contact, emotional intelligence or physical elements will be least affected. 


source: HiringLab.org 


Consider nursing, which is relatively immune from wholesale substitution effects. 


source: HiringLab.org 


In contrast, many more of the software development functions are likely to be affected. 


source: HiringLab.org 


Of the close to 3,000 requirements analyzed, the two dimensions that most directly determine task

transformation are:

• Problem-solving ability (cognitive reasoning, applied knowledge, and practical judgment)

• Physical necessity (physical execution, such as home construction, home repairs, plumbing and electrical work)


We might guess that the effects will extend as AI is embodied in more machines, with robotaxis and autonomous driving vehicles providing a good example. 


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