As AI advancements accelerate and new automation and efficiency tools emerge, worries about its implications for the workforce are steadily intensifying.
Existing data indicates these apprehensions are well-founded.
A study from MIT in November revealed that approximately 11.7% of jobs could currently be automated by AI. Furthermore, research indicates that businesses are already reducing entry-level positions due to this technology, and some companies are attributing layoffs directly to increased AI investment.
With businesses increasingly integrating AI, a re-evaluation of staffing requirements could become common.
During a recent TechCrunch survey, several enterprise venture capitalists spontaneously commented on AI’s substantial projected impact on the corporate workforce in 2026, which was notable given the topic wasn’t directly posed.
Eric Bahn, co-founder and general partner at Hustle Fund, anticipates labor will be affected in 2026, though the precise nature of these changes remains unclear to him.
Bahn stated, “I’m interested to observe which roles—from those involving high repetition to more complex positions requiring advanced logic—will become increasingly automated. Will this result in more job cuts, enhanced productivity, or will AI merely augment the current labor force, making it even more efficient? These questions largely remain open, but it appears 2026 is poised for significant developments.”
Marell Evans, founder and managing partner at Exceptional Capital, forecasted that companies aiming to boost AI investments would reallocate funds from their labor and hiring budgets.
Evans remarked, “I anticipate that alongside a rise in AI budgets, there will be a corresponding reduction in human labor, leading to continued aggressive layoffs affecting the U.S. employment rate.”
Rajeev Dham, a managing director at Sapphire, concurred that by 2026, budgets would begin reallocating resources from human labor to AI. Jason Mendel, a venture investor at Battery Ventures, further suggested that AI would evolve beyond merely enhancing worker efficiency in 2026.
Mendel stated, “In 2026, we’ll see the rise of agents, as software moves beyond boosting human productivity to automating tasks entirely, fulfilling the promise of human-labor displacement in certain sectors.”
Antonia Dean, a partner at Black Operator Ventures, indicated that regardless of whether companies actually redirect labor budgets to AI initiatives, they are likely to cite AI as the justification for layoffs or reduced labor expenses.
Dean explained, “The complication lies in the fact that many businesses, regardless of their preparedness to effectively deploy AI solutions, will claim increased AI investment to account for spending cuts elsewhere or workforce reductions. Essentially, AI will serve as a convenient excuse for executives attempting to mask previous errors.”
Numerous AI firms contend that their technology does not eradicate jobs but instead facilitates a transition for employees towards “deep work” or more highly skilled roles, as AI handles repetitive, mundane tasks.
However, this perspective is not universally accepted, and concerns about job automation persist. Based on insights from venture capitalists active in this sector, it appears these anxieties are unlikely to subside in 2026.