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AI is driving mass layoffs in tech, but it surely’s boosting salaries by ,000 a yr all over the place else, research says
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AI is driving mass layoffs in tech, but it surely’s boosting salaries by $18,000 a yr all over the place else, research says

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Last updated: July 27, 2025 12:41 pm
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Published: July 27, 2025
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Contents
AI demand explodes past techAI abilities are in demandWinners and losers

You’ve examine it throughout, together with in Fortune Intelligence. Possibly you or buddies have been impacted: synthetic intelligence is already reworking work, not least hiring and firing. Nowhere is the impression extra seen than within the labor market.

The know-how business, the unique epicenter of AI adoption, is now seeing a lot of its personal staff displaced by the very improvements they helped create. Employers, racing to combine AI into every little thing from cloud infrastructure to buyer help, are trimming human headcount in software program engineering, IT help, and administrative capabilities. The rise of AI-powered automation is accelerating layoffs within the tech sector, with impacted workers as excessive as 80,000 in a single depend. Microsoft alone is trimming 15,000 jobs whereas committing $80 billion to new AI investments.

However labor market intelligence agency Lightcast is providing a ray of hope going ahead. Job postings for non-tech roles that require AI abilities are hovering in worth. Lightcast’s new “Past the Buzz” report, primarily based on evaluation of over 1.3 billion job postings, reveals that these postings supply 28% larger salaries—a mean of practically $18,000 extra per yr. The Lightcast analysis underscores the break up in tech and non-tech hiring: job postings for AI abilities in tech roles stay strong, however the proportion of AI jobs inside IT and pc science has fallen, dropping from 61% in 2019 to simply 49% in 2024. This alerts an ongoing contraction of conventional tech roles as AI claims an ever-larger share of the work.

AI demand explodes past tech

Slightly than stifling workforce prospects, Lightcast’s analysis means that AI is dispersing alternative throughout the broader financial system. Greater than half of all jobs requesting AI abilities in 2024 appeared outdoors the tech sector—a radical reversal from earlier years, when AI was confined to Silicon Valley and pc science labs. Fields like advertising, HR, finance, schooling, manufacturing, and customer support are quickly integrating AI instruments, from generative AI platforms that craft advertising content material to predictive analytics engines that optimize provide chains and recruitment.

In truth, job postings mentioning generative AI abilities outdoors IT and pc science have surged an astonishing 800% since 2022, catalyzed by the proliferation of instruments like ChatGPT, Microsoft Copilot, and DALL-E. Advertising and marketing, design, schooling, and HR are a few of the quickest growers in AI adoption—every adapting to new toolkits, workflows, and methods of making worth.

Cole Napper, VP of analysis, innovation, and expertise insights at Lightcast, informed Fortune in an interview that he was struck by the shortage of a discernible sample for which industries have been most affected by the explosion of AI abilities current in job postings, noting that the humanities come prime of the record.

AI abilities are in demand

For the workforce at giant, AI proficiency is rising as one in all at present’s most profitable ability investments. Possessing two or extra AI abilities sends paychecks even larger, with a 43% premium on marketed salaries.

In 2024, greater than 66,000 job postings particularly talked about generative AI as a ability, a virtually fourfold improve from the prior yr, in response to the Lightcast’s 2025 Synthetic Intelligence Index Report. Massive language modeling was the second most typical AI ability, which confirmed up in 19,500 open job posts. Postings itemizing ChatGPT and immediate engineering as abilities ranked third and fourth in frequency, respectively.

Sectors equivalent to buyer/consumer help, gross sales, and manufacturing reported the most important pay bumps for AI-skilled staff, as firms race to automate routine capabilities and leverage AI for aggressive benefit.

Christina Inge, founding father of Thoughtlight, an AI advertising service, informed Fortune in a message AI isn’t simply automating busywork, it’s additionally turning into a device AI-fluent staff can leverage to extend their very own worth to an organization—and to outperform their friends. Take, for instance, somebody in gross sales utilizing AI to create extra focused conversations to shut offers quicker, Inge wrote. The identical will be stated for customer support staff.

“[Customer service workers fluent in AI] know the best way to interpret AI outputs, write clear prompts, and troubleshoot when issues go off script,” Inge stated. “That mixture of human judgment and AI fluency is difficult to search out and properly price the additional pay.”

In fields like advertising and science, even single AI abilities can yield giant returns, whereas extra technical positions gravitate to specialists with superior machine studying or generative AI experience.

Crucially, essentially the most valued AI-enabled roles demand extra than simply technical wizardry. Employers prize a hybrid skillset: communication, management, problem-solving, analysis, and customer support are among the many 10 most-requested abilities in AI-focused postings, alongside technical foundations like machine studying and synthetic intelligence.

“Whereas generative AI excels at duties like writing and coding, uniquely human skills—equivalent to communication, administration, innovation, and sophisticated problem-solving—have gotten much more priceless within the AI period,” the research says.

Winners and losers

The rising repercussions are placing. Tech staff whose roles are readily automated face rising displacement—except they will pivot rapidly into rising areas that meld enterprise, technical, and other people abilities. In the meantime, thousands and thousands of staff outdoors of tech are poised to translate even fundamental AI literacy into new roles or wage positive factors. The aggressive edge now lies with organizations and professionals agile sufficient to mix AI capabilities with human judgement, creativity, and enterprise acumen.

For firms, the chance is evident: treating AI as an remoted technical specialty is now a legal responsibility. Successful companies are investing to embed AI fluency enterprise-wide, upskilling their advertising groups, HR departments, and finance analysts to construct a future-ready workforce.

AI could be the supply of turmoil in Silicon Valley boardrooms, however its financial dividends are flowing quickly to staff—and firms—in each nook of the financial system. For these capable of adapt, AI abilities aren’t a harbinger of job loss, however a passport to larger salaries and new profession prospects. Nonetheless, the analysis doesn’t point out precisely the place within the revenue ranges the upper postings are coming, so Napper stated it’s potential that we’re seeing some compression, with higher-paid tech jobs being phased out and lower-paying positions being barely better-paying.

Napper stated the development of AI abilities cropping up in job postings has exploded over the previous few years, and he doesn’t anticipate a slowdown anytime quickly. Napper stated there’s a “price to complacency”—one that features a important wage reduce. He added that the 28% premium, Lightcast plans to launch follow-up analysis on what stage of the revenue latter the development is hitting essentially the most.

For this story, Fortune used generative AI to assist with an preliminary draft. An editor verified the accuracy of the data earlier than publishing. 

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