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AI and job security: Face fears and face facts

February 2026 employment law letter
Authors: 

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

During a recent round of labor negotiations, a union proposed the following language regarding artificial intelligence (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?

Job losses and AI

In a recent fact check by Tufts University’s nonpartisan publication Econofact, author Keshav Srikant stated that between January 2025 and September 2025, 17,375 jobs were cut because of 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.

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