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Okay, this is exactly the kind of thing we've been talking about for the last few years—where artificial intelligence is going to have a very subtle and sometimes behind-the-scenes effect on the employment market.

Here's an article from a local paper in San Francisco talking about how the company Salesforce, which is one of the largest employers in the San Francisco Silicon Valley area, is not going to hire any new engineers at all this year because of AI.

Now, this is not the same as recession-style layoffs. This is a very quiet, subtle reduction in the workforce. Any company that's growing, that's building up their business, is going to be hiring new people each year, and that's how employment increases. When a company stops hiring new people, it doesn't come across as a layoff, it doesn't come across as a job reduction, but it will affect the employment market.

There's a constant influx of new people into the job market each year. If there aren't new jobs to absorb them, the effect will be the same as layoffs—more people looking for work without available opportunities. Salesforce is a very good example, but they are not the only company doing this. They are just a high-profile, high-tech company, so it makes the news.

Every small mom-and-pop company with 10 employees may also be avoiding hiring that one extra person this year because AI is helping them become more efficient. That’s going to keep new hiring and employment numbers lower.

Some of this might be attributed to a slowing economy or inflation, but a lot of it is forced automation. If you are a supplier or any kind of business, your clients are going to demand lower costs. The only way to achieve that is through automation. In today’s world, automation often comes in the form of AI—or at least what is marketed as AI. Sometimes it’s just advanced automation, not true artificial intelligence.

This is a very subtle, behind-the-scenes way that AI is creeping into the economy, the job market, and the overall efficiency of businesses. It’s reshaping the structure of economics in the U.S.

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How do you deal with this as an individual? If you are a consumer, you want to assess whether AI is truly benefiting you. Sometimes AI improves your buying experience, but sometimes it does not. If you can’t reach an actual human when you need customer service, the experience can be frustrating.

If every company relies on AI for customer service or sales inquiries, you may have no choice but to engage with automated systems. But what about the employment market? If you're an employee and AI is creeping into your industry, how do you adapt?

One thing you can do is learn how to manage AI. AI still requires human oversight, programming, and input. If you're the one person in your division who knows how to operate it, your company won’t need to hire an outsider. Given that businesses are avoiding new hires, acquiring AI skills makes you more valuable, especially if you already understand the job, department, or division where AI is being implemented.

Here’s the most important takeaway from this article:

"My message to CEOs right now is: We are the last generation to manage only humans."

Think about that. This statement comes from the CEO of a large tech company—one of the largest in the industry. Salesforce’s earnings call indicates that future companies will have hybrid human and digital workforces. Salesforce is aiming to lead this shift by becoming the number one digital labor provider.

What is a digital labor provider? It’s a company that replaces human workers with AI. This is the direction we are heading. The biggest tech companies in Silicon Valley are racing to build sophisticated virtual employees.

If they are actively developing virtual employees, and this is the last generation of human-only management, what does that mean for many workers? Forget the cultural or societal aspects for a moment—think about yourself. How do you fit into this changing world? How do you survive in a workforce that is rapidly shifting toward AI integration?

It’s crucial to start thinking about this now because it’s only a matter of time before it becomes reality.

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