AI and Job Security: Fears and Facts

By Richard Lehr - Lehr Middlebrooks Vreeland & Thompson, P.C.

December 4, 2025

During a recent round of labor negotiations, the union proposed the following language regarding AI: “Artificial Intelligence shall not be utilized in any manner that displaces, diminishes, or eliminates existing bargaining unit work. AI shall not replace, displace, or erode job classifications or duties currently performed by bargaining unit employees.” This proposal was rejected without a counteroffer, for several reasons, including that the employer (a manufacturing facility) would not agree to a limitation on the impact of AI, as AI continues to evolve and its impact on several sectors is unpredictable. The union’s proposal evolved from the fear of job loss due to AI, but how realistic and widespread is that outcome?

In a recent Fact Check by Tufts University’s non-partisan publication Econofact, author Keshav Srikant stated that between January-September 2025, 17,375 jobs were cut due to AI, quoting labor market research firm Challenger, Gray & Christmas. During August 2025 alone, there were 5.1 million job separations, which suggests that AI-related separations thus far have been minimal. However, Srikant also cites a Stanford study that found a 13% relative reduction in entry-level employment in industries most exposed to AI. According to The Future of Global Jobs Report 2025, 39% of key job skills will change by 2030, led by technology skills. It may be that AI doesn’t result in job separations, but rather a reduction in key job categories. 

An analysis by the University of San Diego identified the industries where job automation is most likely to result in a transformative decline of jobs: Customer service and experience, banking and insurance, and transportation. In all three sectors, we’ve experienced how AI has reduced the point of contact with people. In customer service, we’re given prompts that seem to take forever before we speak to someone. In banking, paperwork is more automated, which has the benefit of more effectively detecting fraud. And in transportation, we’re experiencing self-driving cars, soon to include trucks and buses. 

Employers should be transparent regarding AI plans. Otherwise, employees will seek their own answer to whether AI will replace them, and that answer is likely to be alarmist and incorrect.

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