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Why AI Is Making Waves In The Job Market

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Since its inception, artificial intelligence (AI) has become one of the hottest topics. While many people were impressed by its capabilities, many more were also concerned about potential drawbacks. One of those drawbacks was what happens to lower-skilled labor, whose job market was most at risk from AI. However, those fears have quickly been quieted or even reversed in some cases. In fact, more and more unemployed Americans have turned to AI to help them get back to work. So, how exactly is AI affecting current job openings with recruitment software? Let’s explore below.

First, AI itself has created more opportunities in the market. It is estimated that over 170 million jobs will be created to work with AI over the next decade. This means that even people with traditional skills can find work by studying AI. Moreover, the existence of AI makes certain roles accessible to people with disabilities, who often are still actively willing to work but simply unable to do so due to their current situation. Even attracting just 1% of the U.S. population with disabilities could add $25 billion to the country’s GDP.

However, AI offers the greatest benefit to those who are recently unemployed and seeking new work. Because of the nature of AI, it can generate resumes and cover letters for any applicant in just seconds. This can help people who are applying for a high volume of jobs and want to tailor their resumes to each role. AI can also scan the internet to help an applicant better prepare for an upcoming job interview. Some people are even using AI to search for jobs, to ensure that the work culture and workplace environment are a good fit for their skill set.

By scanning job postings across the internet, AI has enabled skilled applicants to find jobs where they fit in better. Around 64% of respondents who claimed they used AI found a job with higher pay. Statistically, learning AI could increase the average wage by 25%. This wage increase is even disproportionately higher in roles where AI use is a highly valued skill. In fact, database designers see an average increase of 53%, and lawyers see an increase of 49%.

Furthermore, over half of all respondents report that using AI helped them achieve a better work-life balance in their workplace. 61% of business leaders say AI gave them more free time, greater productivity, and a higher ROI. In fact, AI is so productive that 93% of leaders felt comfortable with a 4-day workweek.

These benefits aren’t specifically localized either. When agentic AI is deployed in a job, it saves an estimated one hour per day of menial labor. At the U.S. national average wage of $29.81, this means that around $7,750.60 is saved per employee every year. Moreover, the hour saved daily means an estimated 260 hours can be reinvested back into your business per worker, annually. Best of all, this AI is only getting more powerful over time. AI can double its task length every month, meaning that in just a few years, a week-long task could be reduced to mere seconds.

Because of these benefits, over half of U.S. employees already use AI daily. And because of current market conditions, some employees are holding onto roles they don’t want or don’t feel valued in, simply for stability. Although they fill a chair, these ‘job huggers’ cost the company productivity and can drag down overall job morale. However, with AI, feelings of burnout or lost purpose plummet dramatically.

So how exactly can AI help with this type of problem? As of last year, an estimated 30% of hours in the economy could be automated. This type of menial labor both steals time from more complex tasks and leaves employees feeling like they’re wasting their time in their role. By having AI complete these tasks instead, burnout rates drop from 54% to 41%, and these menial tasks are usually completed more efficiently. Workers who use AI often feel more stable or flexible in the job market. An estimated 46% of Americans surveyed say AI-related skills improve their job stability, and 53% believe that if they continue to grow their skills, they will not be replaced by AI.

Ultimately, AI is an incredible tool and is only likely to become more useful to businesses over time. Whether it’s to knock out menial tasks quickly or to help your workers keep a good work-life balance, AI has several ways to fit itself into your business. If you want to keep employees happy while making your business run more smoothly, AI is the only way to go.

Brian Wallace is the Founder and President of NowSourcing, an industry-leading content marketing agency that makes your complexity simple, visual, and influential. Brian was named a Google Small Business Advisor from 2016 to present, served on the SXSW Advisory Board from 2019 to 2022, and became an SMB Advisor for Lexmark in 2023. He is the Founder of Innovate Summit, which enters its 3rd year in May 2026.

Photo courtesy Getty Images for Unsplash+

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