Is AI Already Changing the Job Market?

Published Date : 13/07/2025 

The impact of artificial intelligence (AI) on employment has come into sharp focus, with notable reductions in graduate hiring and major AI rollouts by companies like AIB. This article explores the current trends and potential future implications. 

The impact of artificial intelligence (AI) on employment has come into sharp focus this week. On Tuesday, Minister of State with responsibility for AI, Niamh Smyth, told the Oireachtas Committee on Artificial Intelligence that job displacement due to AI is inevitable. This week also saw the release of the latest 'Employment Monitor' from recruitment firm Morgan McKinley Ireland, which reported significant reductions in graduate hiring by major firms in the accountancy and finance sectors due to the adoption of AI. Additionally, AIB announced a major AI rollout in collaboration with Microsoft Ireland, raising concerns from trade unions.

Morgan McKinley Ireland's Employment Monitor for the second quarter of the year highlighted the significant impact of AI and automation, particularly in the accountancy and finance sectors. The report noted a notable reduction in graduate hiring by major firms, driven by AI capabilities. Companies are increasingly leveraging AI to automate routine tasks such as accounts payable, accounts receivable, credit control, and payroll.

One of the trends driven by automation is the reduction in graduate-level hiring, raising concerns about potential shortages of experienced mid-level professionals, which could impact future business operations and growth. The graduates of today are often the key staff members, middle-managers, and executives of tomorrow. This reduction in graduate hiring could deprive companies of future talent pipelines. Trayc Keevans, Global Director of Morgan McKinley Ireland, advised caution, stating that a reduction in graduate numbers could have long-term effects on the workforce, similar to the impact seen after the 2008 financial crash.

Many companies have decided that entry-level, repetitive tasks can now be done by AI tools. However, performing these so-called 'menial' tasks is often a way for new recruits to learn their trade and gain experience from a ground-up approach. Graduates in accounting and finance, for instance, used to gain experience in tasks like budget reconciliation, document reviews, and first-pass audit checks, which can now be automated by AI. While this redefining of graduate roles is happening, there is caution among employers about hiring the same volume of graduates as before. The hope is that this is a short-term view while employers are catching up with the redesign of these roles.

Graduates will need skills to control and supervise the AI models their employers are increasingly relying on. To do this, they will need to understand the tasks performed by the technology. It is crucial to ensure they gain sufficient exposure and experience to develop oversight skills, ensuring they work with and govern AI efficiently and ethically.

The rise of AI is not just impacting the job market negatively; it is also leading to increased hiring for roles such as data engineers. AIB announced a new AI rollout for staff in conjunction with Microsoft Ireland, aiming to reduce time spent on repetitive tasks and free up employees for higher-value work. The bank will deploy Microsoft 365 Copilot, embedding AI into everyday tools like Outlook, Word, Excel, Teams, and PowerPoint.

The Financial Services Union (FSU) expressed concerns that AIB made its AI announcement before a formal agreement had been finalized with unions. John O’Connell, General Secretary of the FSU, stated that while AI is a disruptor, it is also an enabler, and the potential must be exploited with a focus on reskilling impacted employees. AIB has assured staff that they will be offered comprehensive support and training to get the most out of the new AI tools.

Earlier this month, Microsoft announced plans to cut 9,000 jobs globally, following previous layoffs in May and January. The cuts come amid a major drive towards AI at the tech giant. While Microsoft has not directly attributed the layoffs to AI replacing human workers, the timing and focus of the cuts suggest a shift towards a leaner, more automated organization. Microsoft employs over 4,000 people in Ireland across various sectors, and the company has not specified how many Irish-based roles will be affected by these latest layoffs.

A recent Workplace Relations Commission (WRC) hearing revealed that 150 job cuts announced last year for multilingual support staff at TikTok's Irish office were driven by advancements in AI. The business rationale for the layoffs was based on AI technology taking on a bigger role and reducing the number of employees required, particularly in language skills.

Last year, the Government produced a series of reports entitled 'Artificial Intelligence: Friend or Foe'. The research found that around 30% of workers are employed in roles at risk of being replaced by AI. The financial and insurance sector, and the information and communication sector, are the most exposed. At-risk jobs include laboratory technicians, accountants, telephone salespeople, and IT operations technicians. The agriculture, forestry, and fishing sector is the least exposed. Women are relatively more exposed to AI job losses than men, as more women are employed in administrative or customer service roles.

As companies embrace artificial intelligence, they are currently focused on the tasks AI can replace rather than the people. However, the realization that the people who used to perform those tasks are no longer needed is a movement that has already begun. This is evident from the employment report highlighting the notable fall in graduate hiring in accounting and finance and the similar trends across big tech. AIB's AI rollout this week has made headlines, and we can expect many similar announcements and expressions of concern from trade unions in the future. 

Frequently Asked Questions (FAQS): 

Q: What is the main concern regarding AI and employment?

A: The main concern is that AI will lead to job displacement, particularly in sectors like accountancy and finance, where routine tasks can be automated.

Q: How are companies like AIB addressing the implementation of AI?

A: AIB is rolling out AI tools in collaboration with Microsoft Ireland to reduce time spent on repetitive tasks and free up employees for higher-value work. They are also offering comprehensive support and training to ensure employees can effectively use the new AI tools.

Q: What impact is AI having on graduate hiring?

A: AI is leading to a reduction in graduate hiring as companies are leveraging AI capabilities to automate routine tasks that were traditionally done by new recruits.

Q: Which sectors are most at risk from AI job displacement?

A: The financial and insurance sector, and the information and communication sector, are the most at risk from AI job displacement. At-risk jobs include laboratory technicians, accountants, telephone salespeople, and IT operations technicians.

Q: What is the government's role in addressing the impact of AI on employment?

A: The government has produced reports on the impact of AI on the job market and established an AI Observatory to provide clear data and analysis on job displacement and how to mitigate its effects. 

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