AI Is Eating White-Collar Jobs — Even Inside AI Companies 🤖

🤖 AI Is Eating White-Collar Jobs — Even Inside AI Companies

As artificial intelligence rapidly advances, it’s not just replacing low-skill labor — it’s beginning to gut white-collar professions, starting with entry-level roles in tech, law, finance, and consulting. Even AI companies themselves, like Anthropic, are scaling back on junior hires, opting for highly skilled talent or those who’ve mastered using AI tools like Claude.

💼 The Shrinking Path for New Grads

No more golden tickets
Anthropic’s CPO Mike Krieger — formerly of Instagram — shared on Hard Fork that they’re hesitant to bring on entry-level engineers. Why? Their internal structure doesn’t support robust internships, and their current focus is on hiring experienced talent. This signals a shift: AI companies are struggling to justify the cost and time to train junior hires when AI can automate large parts of the job.

Even star coders aren’t safe
Krieger predicts the engineering role will morph into more of a strategic one: humans will be tasked with ideation, delegating to AI, and reviewing its output at scale. A junior engineer who can wield Claude effectively might still get hired — but only if they’re as productive as a senior.

📉 Data Doesn’t Lie: Jobs with AI Exposure Are Disappearing

Economist Zanele Munyikwa from Revelio Labs revealed that in the last three years, job listings featuring AI-doable tasks have dropped 19%. The sharpest decline? High-exposure roles like database admins, IT support, and data engineers — precisely the fields once thought future-proof.

Decline in high-exposure job postings:

• High-AI exposure: −31%

• Low-AI exposure: −25%

This trend suggests that companies aren’t just automating jobs — they’re erasing them from their hiring plans altogether.

🧑‍💻 AI’s Silent Takeover: Confirmed by Obama and Bannon

Two unlikely voices — Barack Obama and Steve Bannon — have flagged the same threat: AI is displacing early-career jobs at a staggering rate.

Obama: Warns we could see 10–20% unemployment in just 1–5 years due to AI wiping out junior white-collar roles.

Bannon: Predicts entry-level admin, tech, and managerial jobs for those under 30 will be “eviscerated.”

Even worse, experts say the U.S. government is failing to prepare the workforce or communicate the urgency to the public.

🏗️ Inside Companies: AI First, People Later

Companies are already institutionalizing AI-first hiring policies:

• Shopify: Managers must prove AI can’t do the job before requesting new hires.

• Duolingo: Actively phasing out contractors and replacing them with AI.

• Klarna: Froze hiring after its AI assistant replaced 700 agents — but reversed course after quality suffered. Still, Klarna plans to reduce headcount by 500 more this year.

Bottom line? Even companies that backpedal admit they’ll resume cutting jobs as AI tools improve.

🌍 The “Terrible Decade” Ahead

Anthropic researchers Trenton Bricken and Sholto Douglas warn of a grim near-future:

• Within 5 years, most white-collar work could be automated.

• Even if AI progress plateaus, current models are already good enough to displace millions — with the right data.

• Without robotic labor catching up, people may be reduced to physical laborers, while AI handles the thinking.

As Douglas put it: “People’s main comparative advantage might just be that they’re fantastic robots.”

💡 Takeaway

The AI revolution isn’t coming — it’s here. Entry-level white-collar roles are already vanishing. Those who adapt by mastering AI tools may stay relevant, but governments, educators, and workers must act fast. Whether we face a short-term hiring freeze or a full-scale labor reset depends on the choices we make now.

💬 OpenAI Developments

ChatGPT is set to become a “super assistant”

OpenAI plans to transform ChatGPT into a “super assistant” that is more personalized and proactive, capable of anticipating user needs and interacting with other apps to perform tasks autonomously. This evolution is expected to begin in the first half of 2025, aiming to make ChatGPT more useful and integrated into users’ daily lives.

Upgrade To DeepSeek’s R1 AI Model ‘Matches’ OpenAI

Chinese AI startup DeepSeek has released a major upgrade to its R1 model, named R1-0528, which enhances reasoning, coding, and creative writing capabilities while reducing hallucinations by 50%. Benchmark tests indicate that R1-0528 matches the performance of OpenAI's o3 and Google's Gemini 2.5 Pro, surpassing domestic rivals like Alibaba's Qwen3, and has been adopted by major Chinese tech firms such as Tencent, Baidu, and ByteDance for their cloud platforms.

🚀 Tech Industry Moves

Nvidia is developing a new AI accelerator chip specifically for the Chinese market following the U.S. ban on its H20 chip exports, which were designed to comply with earlier export restrictions. The upcoming chip will not utilize the Hopper architecture, as it cannot be sufficiently downgraded to meet current U.S. regulations. CEO Jensen Huang acknowledged that while no product is ready yet, the company aims to continue serving China, which accounts for approximately 14% of Nvidia's revenue. Analysts estimate that a compliant chip could generate around $3 billion in revenue in the latter half of Nvidia's fiscal year.

Foxconn and Nvidia have announced a major collaboration to build one of Taiwan's most advanced AI infrastructure projects—a cutting-edge AI Factory supercomputing center. The facility aims to accelerate artificial intelligence research and deployment across Taiwan's government, industry, and academic sectors.

Microsoft has announced a $400 million investment in Switzerland to enhance its cloud computing and artificial intelligence infrastructure. The funds will be used to expand and upgrade the company's four data centers near Geneva and Zurich, ensuring data remains within Swiss borders—a critical factor for sectors like healthcare, finance, and government. Additionally, Microsoft plans to strengthen collaborations with small and medium-sized enterprises and increase training programs to help individuals effectively utilize AI and digital tools.

Kainos & Microsoft Launch AI Centre Of Excellence. Kainos, a digital technology company headquartered in Northern Ireland, has partnered with Microsoft to launch a Microsoft AI Centre of Excellence (AI CoE), expanding on a £10 million investment in AI initiatives announced in 2023. The AI CoE, led by Ruth McGuinness, aims to assist clients in designing, deploying, and scaling AI solutions using Microsoft's advanced technologies, focusing on applications in highly regulated sectors such as defence, finance, and healthcare.

Google has introduced the AI Edge Gallery app for Android, enabling users to run AI models locally on their smartphones without an internet connection. This app allows for tasks like image generation, question answering, and code editing using models from Hugging Face, all processed directly on the device.

💡 AI Tools

Otter.ai
Otter.ai is an AI-powered transcription tool that converts spoken content into written text in real time, making it ideal for meetings, interviews, and lectures. It also offers features like speaker identification, keyword summaries, and integration with Zoom and Google Meet.

Clay
Clay is an AI-driven personal CRM that helps professionals manage and deepen relationships by automatically organizing contacts, emails, and social interactions. It offers smart reminders, note-taking, and context-aware updates for better relationship-building.

PolyCoder
PolyCoder is an open-source AI code generation model developed by Carnegie Mellon University, optimized for C programming language. Unlike general-purpose coding models, PolyCoder is compact and designed for efficiency in generating high-performance C code.

Momen
Momen is an AI video generation platform that turns text-based scripts into animated videos, allowing creators to produce content without needing design or editing skills. It supports multiple languages, avatars, and voiceovers for scalable video production.

Pacdora
Pacdora is an AI-powered design platform focused on packaging design, offering instant 3D mockups, dielines, and brand assets. It enables users—especially in the e-commerce and branding space—to create professional packaging without needing CAD or design expertise.

👥 Connect & Feedback!

👉 Join Us:

📧 Advertise In Weekly AI News:

📧 Contact directly at [email protected]

😍 Share with your friends!