Artificial intelligence (AI) is no longer a distant concept reserved for science fiction—it’s here, and its impact on the global job market is already being felt.
The latest data from the Inter-American Development Bank (IDB) suggests that AI will soon reshape employment on a massive scale, with millions of jobs in the United States and Mexico alone affected in the coming years. In just one year, 43 million jobs in the U.S. and 16 million in Mexico will undergo significant changes due to AI’s integration. This shift will only accelerate, with projections showing that within a decade, 70 million U.S. jobs and 26 million in Mexico will be impacted.
Though these numbers are staggering, they don’t necessarily equate to mass unemployment. What they do signal is a fundamental transformation of the job landscape, with many occupations being reshaped or redefined.
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“AI is changing the rules, and we need to be prepared. These figures highlight the opportunity to rethink our approach to work, education, and skills training,” Eric Parrado, chief economist at the IDB, said.
The Index That Sounds the Alarm
At the heart of this revelation is the AI-generated Index of Occupational Exposure, a tool created by the IDB to measure AI’s potential influence across more than 750 professions. By analyzing large datasets, this index forecasts the extent to which AI could alter job tasks and occupations in the short, medium, and long term. Unlike traditional surveys that are often costly and time-consuming, the index provides a real-time, comprehensive view of how AI could reshape industries.
Globally, AI is expected to affect 980 million jobs within a year—roughly 28% of the world’s workforce. By the five-year mark, this figure will rise to nearly 38%, and in 10 years, 44% of jobs will feel AI’s impact. This scale of disruption is reminiscent of the Industrial Revolution of the 19th century, though it’s happening at a much faster pace.
“This is not a slow burn—it’s happening exponentially,” Parrado explains. “The speed of this technological revolution demands that we act now, both in policy and practice, to mitigate potential negative consequences.”
Opportunity or Crisis?
While the numbers might evoke a sense of looming crisis, Parrado and his colleagues at the IDB remain optimistic. History shows that technological advancements often lead to job realignments rather than outright losses. Parrado believes AI will enhance productivity and create new types of employment.
“We’ve seen significant technological shifts in the past, and they didn’t result in a long-term reduction in employment. Instead, they led to new kinds of jobs,” he notes.
But the path to a brighter future is not guaranteed. Without proper preparation, AI could worsen existing inequalities, particularly for vulnerable groups like women and low-income workers. Women, especially in the U.S. and Mexico, are expected to bear the brunt of AI’s impact. Due to the types of jobs they often occupy—administrative, office, and service roles—40% of women in the U.S. and Mexico will face job changes or task automation, compared to 38% of men.
The disparity doesn’t stop there. Workers with less formal education and those earning lower wages are also at greater risk. In the U.S., it’s lower-income individuals who will feel the pinch most acutely, while in Mexico, both working-class and middle-class jobs are vulnerable. AI’s arrival could deepen global inequality, making swift action to protect these populations even more critical.
A Roadmap for Survival
In response to this seismic shift, the IDB is urging governments and businesses to take proactive steps. Parrado and his co-authors stress the importance of education and retraining, particularly in areas that AI can’t easily replace. These include critical thinking, creativity, and emotional intelligence—skills that will remain indispensable in an AI-driven future.
“The fact is, we need to rethink how we educate our workforce,” says Parrado.
He argues for a significant investment in education, from re-skilling programs for current workers to the integration of AI-related subjects into school curriculums.
“This is the new normal. AI is here to stay, and the faster we adapt, the better we’ll be positioned to thrive,” he said.
In addition to education, the study advocates for improved social safety nets, such as expanded unemployment insurance and direct subsidies for workers transitioning to new roles. These measures would help soften the immediate impact of job displacement, giving workers the time and resources needed to retool their skills. There is also a call for policies that promote ethical AI development and support small businesses as they navigate these uncharted waters.
Who’s Safe, and Who’s Not
The index provides a detailed breakdown of which jobs are most vulnerable to AI—and which are more likely to survive the coming storm. Roles like telephone operators, telemarketers, credit evaluators, and machine operators are among the most at-risk, with automation already making significant inroads into these sectors. In some cases, such as that of telephone operators, 92% of positions are expected to be affected by AI within the year.
By contrast, jobs that rely heavily on human judgment, creativity, or physical prowess—like firefighters, athletes, and teachers—are likely to remain relatively safe. Interestingly, the index shows that even within the medical field, AI’s impact varies. For example, radiologists may find their roles increasingly automated, while psychologists and surgeons are less likely to be replaced.
The Clock is Ticking
The IDB’s findings are clear: AI is poised to radically transform the global workforce, and the time to act is now. The study noted governments, businesses, and educational institutions must come together to ensure that workers are prepared for the changes ahead. Without swift intervention, it added, AI could deepen the divides between high and low-income earners, men and women, and workers across different educational backgrounds.
“We have a narrow window to make the right decisions,” Parrado warns. “If we fail to invest in our workforce, the consequences could be devastating. But if we get it right, AI could become a tool for progress, driving productivity and creating new opportunities for all.”