This Week In AI Business: Job Displacement & Creation in the Age of AI [Week #30-2025]
We stand at a unique inflection point where artificial intelligence simultaneously destroys and creates employment at unprecedented scales.
While 41% of employers plan to reduce their workforce due to AI automation over the next five years, the same technology enables a 56% wage premium for AI-skilled workers and creates entirely new economic ecosystems.
This analysis reveals that AI's impact transcends simple job replacement—it's fundamentally restructuring how organizations operate, empowering individual contributors while rendering middle management increasingly obsolete.
The key insight: Organizations are becoming leaner and flatter, but more empowering for top performers and visionaries.
This creates a bifurcated economy where AI-augmented superstars capture disproportionate value while routine workers face displacement.
The winners? Individual contributors who master human-AI collaboration, entrepreneurs who leverage AI for business creation, and visionaries who can imagine new possibilities faster than ever before.
The weekly newsletter is in the spirit of what it means to be a Business Engineer:
We always want to ask three core questions:
What’s the shape of the underlying technology that connects the value prop to its product?
What’s the shape of the underlying business that connects the value prop to its distribution?
How does the business survive in the short term while adhering to its long-term vision through transitional business modeling and market dynamics?
These non-linear analyses aim to isolate the short-term buzz and noise, identify the signal, and ensure that the short-term and the long-term can be reconciled.