Concerns over artificial intelligence replacing human jobs continue to grow alongside rapid technological progress.
As new AI products promise greater efficiency, evidence increasingly suggests that workforce disruption is already underway.
A November study from MIT estimated that 11.7% of jobs could already be automated using existing AI capabilities.
Surveys also indicate employers are cutting entry-level roles and citing AI as a factor behind layoffs.
Workforce Impact Moves Into Focus
As businesses expand AI adoption, executives are reassessing how many workers are truly required.
That shift may become more visible over the next two years as automation moves beyond experimentation.
In a recent survey of enterprise-focused venture capital firms, many predicted major workforce impacts by 2026.
The question arose even though respondents were not directly asked about labor reduction.
Investors See Major Change Ahead
Eric Bahn, co-founder and general partner at Hustle Fund, expects noticeable labor effects in 2026.
“I want to see what roles that have been known for more repetition get automated, or even more complicated roles with more logic become more automated,” Bahn said.
“Is it going to lead to more layoffs? Is there going to be higher productivity? Or will AI just be an augmentation for the existing labor market to be even more productive in the future?” he added.
“All of this seems pretty unanswered, but it seems like something big is going to happen in 2026.”
Budgets Shift Away From Hiring
Some investors believe AI spending will come directly at the expense of human labor budgets.
Marell Evans, founder and managing partner at Exceptional Capital, expects companies to redirect funds accordingly.
“I think on the flip side of seeing an incremental increase in AI budgets, we’ll see more human labor get cut and layoffs will continue to aggressively impact the U.S. employment rate,” Evans said.
Others echoed the view that workforce reductions may accelerate as automation becomes cheaper and more reliable.
From Productivity Tool to Replacement
Rajeev Dham, managing director at Sapphire, said 2026 budgets will likely prioritize AI over hiring.
Jason Mendel, a venture investor at Battery Ventures, believes AI’s role will fundamentally change.
“2026 will be the year of agents as software expands from making humans more productive to automating work itself,” Mendel said.
He added that AI will begin “delivering on the human-labor displacement value proposition in some areas”.
AI as a Convenient Explanation
Some investors warn AI may also become a convenient justification for job cuts.
Antonia Dean, a partner at Black Operator Ventures, expects executives to lean on AI narratives.
“Many enterprises will say that they are increasing their investments in AI to explain why they are cutting back spending in other areas or trimming workforces,” Dean said.
“In reality, AI will become the scapegoat for executives looking to cover for past mistakes.”
Anxiety Unlikely to Fade
AI developers often argue automation shifts workers toward higher-value tasks rather than eliminating jobs entirely.
That argument has done little to calm widespread concern among employees.
According to investors, fears about job security are unlikely to ease in 2026.
Instead, uncertainty may grow as automation becomes more embedded in everyday business operations.
He stepped down, trying not to look long at her, as if she were the sun. We are all fools in love. Call me Ishmael, for I have a story to tell.
