Image Source: Unsplash
 

Companies are breaking records. People are losing jobs.

And it’s not just in the USA, but it’s happening almost everywhere. For the first time in decades, the lines that usually move together have split apart. Sales and profits are booming. But the job market? It’s softening.

Over the past three years, global corporations have hit record highs in revenue and stock prices, even while cutting staff. Big firms are selling more, earning more, and hiring less. The same story plays out in the U.S., Europe, and Asia.

The reason isn’t a mystery. Technology now lets companies do more with fewer people. Automation, AI, smarter logistics, better software, it’s all reducing the need for human labor. And for the first time, it’s not just factories feeling it. White-collar work is on the line too.

Four in ten CEOs say they’ll replace workers with AI within the next two years. Seven in ten believe AI will reshape their business entirely. That’s why re-skilling programs are popping up everywhere, with people trying to learn how to work with AI before it replaces them.

But here’s the twist. Most companies using AI aren’t seeing a profit from it yet. One MIT study found that 95% of them still haven’t earned back what they invested. Small businesses that rushed to replace people with AI now say they regret it. Only the biggest firms, the ones with pricing power, data, and capital, are really benefitting.

Look at global stock markets. The big caps, Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Samsung, are flying. Smaller companies? Stuck. That’s not productivity. That’s concentration.

So yes, something big is shifting. But maybe not the way everyone thinks. This “AI boom” isn’t yet about efficiency. It’s about belief, belief that machines will save costs and boost profits, even if the numbers don’t show it yet.

AI isn’t replacing people yet. It’s replacing belief in people. And that might be the real risk.

More By This Author:

If Taiwan Falls, So Does AI
From Free-To-Play To Pay-To-Regulate: Europe’s Next Tech Mistake
From $80 Games to $5B Hits: Inside Gaming’s Turbulent Transformation in May 2025