AI and Talent…Where Do We Go From Here?

Programs Director Nayla Daly dissects the AI-driven shake-up in the workforce, and how Massachusetts might lead the reboot.

At our recent Innovation unConference session on AI and the workforce, we heard a lot of perspectives. But the biggest takeaway was simple.

This is not a conversation about the future. The shift is already underway.

Some of the most striking moments came when people shared real data. Between January and May of this year, there were at least five peer-reviewed studies showing the impact of AI on employment. One of the clearest examples was in software engineering. The Bureau of Labor Statistics reported a 27% drop in postings for programming jobs over the last year. That’s a big number, representing a collapse of a whole category of work.

And it’s not just startups or AI-first companies making changes. We heard examples from major employers like Pepsico and CAA. Both have paused hiring for knowledge worker roles while they reassess what skills they actually need. These companies usually hire thousands each year. Now they are holding off.

The data suggests this isn’t isolated. One analysis looked at real-world adoption of generative AI tools and found that about 4 to 5% of knowledge work could already be reduced by 75%. Another 5% of work is seeing reductions in the 10 to 20% range. Altogether, that could lead to a 12 to 18% drop in employment in advanced economies over the next two to three years. That’s a massive shift in a short amount of time.

So, what do we do about it?

The group agreed that we need to focus on the transition. That includes helping workers whose jobs are being restructured or eliminated, but also rethinking how we prepare people for new roles. Entry-level jobs are changing or disappearing. That raises questions about how people will gain experience and grow into more complex work. Some suggested new models, where work is organized around tasks and skills, not job titles.

There was also discussion about what support systems are needed. Ideas ranged from universal basic income to universal access to AI tools and training. One participant put it simply. Without access, people cannot even begin to keep up.

Massachusetts came up several times as a place that could lead. Our economy is heavily made up of knowledge work, so we will likely feel the impact sooner than most. That creates urgency, but also opportunity. What would it look like to build a roadmap for a post-AI workforce here? And how could we share those lessons with others?

The tone of the session was serious, but not hopeless. We are still early in this shift. The question is whether we move fast enough to keep up. That will depend on what we build, and how willing we are to do it together.