If you read business news or scroll through LinkedIn, you’ll often see warnings that artificial intelligence (AI) is going to take away jobs. In fact, AI—a term that covers many technologies developed since the 1960s—has already been replacing some types of work for more than 10 years.

The newest wave, like generative AI tools that create text or images, has quickly become popular in business and among consumers. But research shows that many AI projects in companies fail. These failures may reduce the fear that every task can be replaced by machines.

How Technology Has Affected Jobs in the Past

The idea of using technology in business is simple: machines, computers, and communication systems can reduce the need for “expensive” and “unreliable” human workers. Supporters argue that while technology cuts some jobs, it also creates new ones—often better than the old ones.

There is some truth to this. A study from MIT, New Frontiers: The Origins and Content of New Work, 1940–2018, looked at U.S. Census data and job exposure to new technologies. The research found that from 1940 to 1980, new technologies helped create many jobs in middle-income roles like production and clerical work.

The downside was that people who lost their old jobs often didn’t have the right skills to move into the new ones.

Big Shifts Since 1980

Things changed a lot after 1980. Jobs split into two groups: well-paid professional careers and low-paid service work. New technologies often replaced jobs instead of creating more. Since then, the number of jobs lost has been greater than the number of jobs created.

AI and Automation Taking More Jobs

Automation—using machines, software, or AI—has been replacing both white-collar and blue-collar jobs for decades. Workers who lose jobs now have fewer chances to switch careers, and the job market is weaker overall.

The Push for AI in Business

Recently, many CEOs have promoted AI, especially generative AI, as a way to save money and boost productivity. Boards of directors were excited, asking when the results would come. But an MIT study, The GenAI Divide: State of AI in Business 2025, looked at over 300 public AI projects and found that 95% produced no results.

Failure isn’t new in corporate tech projects, but the usual failure rate was about 70%. With AI, only 5% of pilot projects became real business solutions with measurable value.

Why So Many Fail?

Many business leaders don’t fully understand technology. They usually invest in areas like sales and marketing, where results are easier to track. But the real value often comes from back-end areas like procurement, finance, and operations.

Employees Using AI Without Approval

At the same time, 90% of employees already use tools like ChatGPT, even though only 40% of companies have official licenses. This creates legal risks for companies.

The Road Ahead

If companies can’t manage AI better, the same problems that hurt earlier technologies may slow down progress again. Executives and boards may lose interest, and the promise of reducing staff might fade once leaders stop trusting the hype.

Published: 24th September 2025

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