99% of bosses say AI will replace jobs, employees aged 22-27 face greatest risk
The biggest AI risk may not be to today's workers but to tomorrow's. Mercer's latest global survey shows 99 per cent of executives expect AI-linked workforce cuts within two years. The findings suggest entry-level roles and workers aged 22 to 27 face the greatest disruption.
For decades, young professionals have relied on entry-level jobs to learn the basics of work, build experience and grow into larger roles. A new global survey suggests that pathway may be changing faster than expected.
According to Mercer's latest Global Talent Trends Report, more than 99 per cent of business executives believe artificial intelligence will lead to workforce reductions at some level within the next two years. The survey gathered insights from around 12,000 executives, HR leaders and employees across the world.
While concerns about AI replacing jobs have existed for years, the latest findings suggest that companies are now actively rethinking hiring strategies, particularly for junior roles.
Talent scarcity remains the top concern for executives, while 99% believe AI will lead to some headcount reductions within the next two years.
At the same time, 60% of HR leaders expect 11–20% of their workforce to be reskilled or redeployed due to AI, and 40% of employees are considering leaving their organisation within the next year, highlighting the mounting pressure on employers to adapt.
WHY NEW EMPLOYEES ARE MOST EXPOSED
The report identifies entry-level workers as the group facing the greatest disruption. Tasks traditionally assigned to fresh graduates and early-career professionals are increasingly being automated through AI tools.
As a result, many organisations are reducing recruitment at the bottom of the career ladder. The proportion of companies planning cuts to junior-level positions has risen sharply from 17 per cent to 43 per cent in just one year.
Professionals aged between 22 and 27 are considered particularly vulnerable because many of their day-to-day responsibilities can now be completed more efficiently using AI systems.
The report also says that concerns about AI-driven job displacement are rising rapidly among employees. In 2024, 28% of workers said job loss due to AI was one of their biggest concerns about the future of work.
By 2026, that figure is projected to increase to 40%, highlighting growing anxiety over how automation and artificial intelligence could reshape jobs and career prospects in the coming years.
RACING AHEAD WITHOUT A ROADMAP
Interestingly, the survey suggests companies may be adopting AI faster than they are preparing for it. Only about one-third of organisations said they are confident in their ability to create an effective partnership between human workers and AI.
In simple terms, many businesses appear to be introducing AI first and figuring out employee roles later.
The report also challenges the assumption that job cuts automatically improve performance. Research cited in the study found that organisations that aggressively reduced staff did not always achieve better productivity or profits.
THE SKILL THAT MAY MATTER MOST
The findings come as AI-driven restructuring accelerates globally. Reports indicate that more than 49,000 jobs have already been lost to AI-related changes in 2026, with around 21,500 cuts recorded in April alone in the United States.
Experts say the future workplace is likely to reward people who can work alongside AI rather than compete with it. As companies reshape hiring plans, adaptability and AI literacy may become just as important as traditional qualifications for the next generation of workers.
For decades, young professionals have relied on entry-level jobs to learn the basics of work, build experience and grow into larger roles. A new global survey suggests that pathway may be changing faster than expected.
According to Mercer's latest Global Talent Trends Report, more than 99 per cent of business executives believe artificial intelligence will lead to workforce reductions at some level within the next two years. The survey gathered insights from around 12,000 executives, HR leaders and employees across the world.
While concerns about AI replacing jobs have existed for years, the latest findings suggest that companies are now actively rethinking hiring strategies, particularly for junior roles.
Talent scarcity remains the top concern for executives, while 99% believe AI will lead to some headcount reductions within the next two years.
At the same time, 60% of HR leaders expect 11–20% of their workforce to be reskilled or redeployed due to AI, and 40% of employees are considering leaving their organisation within the next year, highlighting the mounting pressure on employers to adapt.
WHY NEW EMPLOYEES ARE MOST EXPOSED
The report identifies entry-level workers as the group facing the greatest disruption. Tasks traditionally assigned to fresh graduates and early-career professionals are increasingly being automated through AI tools.
As a result, many organisations are reducing recruitment at the bottom of the career ladder. The proportion of companies planning cuts to junior-level positions has risen sharply from 17 per cent to 43 per cent in just one year.
Professionals aged between 22 and 27 are considered particularly vulnerable because many of their day-to-day responsibilities can now be completed more efficiently using AI systems.
The report also says that concerns about AI-driven job displacement are rising rapidly among employees. In 2024, 28% of workers said job loss due to AI was one of their biggest concerns about the future of work.
By 2026, that figure is projected to increase to 40%, highlighting growing anxiety over how automation and artificial intelligence could reshape jobs and career prospects in the coming years.
RACING AHEAD WITHOUT A ROADMAP
Interestingly, the survey suggests companies may be adopting AI faster than they are preparing for it. Only about one-third of organisations said they are confident in their ability to create an effective partnership between human workers and AI.
In simple terms, many businesses appear to be introducing AI first and figuring out employee roles later.
The report also challenges the assumption that job cuts automatically improve performance. Research cited in the study found that organisations that aggressively reduced staff did not always achieve better productivity or profits.
THE SKILL THAT MAY MATTER MOST
The findings come as AI-driven restructuring accelerates globally. Reports indicate that more than 49,000 jobs have already been lost to AI-related changes in 2026, with around 21,500 cuts recorded in April alone in the United States.
Experts say the future workplace is likely to reward people who can work alongside AI rather than compete with it. As companies reshape hiring plans, adaptability and AI literacy may become just as important as traditional qualifications for the next generation of workers.
