McKinsey: Automation could absorb half of U.S. work hours by 2035. The bigger challenge is skills
Good morning. AI could automate more than half of U.S. work hours over the next decade. But that doesn’t mean half the workforce will disappear.
TL;DR
- AI could automate over 50% of U.S. work hours in the next decade, potentially reducing labor demand by the equivalent of 36 million jobs.
- Economic growth, including AI-related sectors, is projected to create about 41 million jobs, possibly resulting in more jobs in 2035 than today.
- The main challenge is that new jobs may require skills many workers currently lack, particularly in fields where judgment and accountability are key.
- Office and administrative support roles are most exposed, with up to 80% of work hours potentially automated.
- Approximately 11 million Americans may need to transition to new occupations, at a rate significantly higher than historical trends.
- About 85% of growing employment requires a credential or certification, leading MGI to suggest companies broaden talent pools by re-evaluating essential qualifications.
- The key question for businesses is not just how much work AI can take on, but how the saved time is used to improve the business.