Fear of AI-driven job displacement nearly doubles in a year: KPMG

Summary

KPMG’s June–July survey of more than 2,100 US workers found 52% now fear job displacement from AI — almost double last year. The report highlights a disconnect: employees say AI helps them focus on higher-value work (77%) but also worry it could perform more than half of their role within two years. Employers largely offer some AI training (85%), yet 84% of staff want more and fewer than half of organisations make training mandatory. KPMG urges firms to reinvest productivity gains into upskilling and to create clear career pathways as lawmakers and researchers flag possible early signs of AI-driven job losses.

The piece also notes wider debate: a Federal Reserve Bank of St. Louis study links AI prevalence with rising unemployment in some sectors; Economist Impact finds CFOs split over whether headcount reduction is an acceptable ROI for AI; and US Senators Josh Hawley and Mark Warner have introduced bipartisan legislation (S. 3108) to require reporting of AI-related layoffs to the Department of Labor.

Key Points

52% of US workers fear AI-driven job displacement — nearly double the level from last year (KPMG).
77% say AI helps them focus on higher-value work, yet many fear AI could do over half their role in two years.
85% of companies provide some AI training, but 84% of employees say they need more; under half make it mandatory.
KPMG recommends reinvesting AI productivity gains into upskilling and clear career pathways to build trust and retain talent.
Research and policy attention is rising: a Fed St. Louis study links AI prevalence to unemployment rises, and Senators Hawley and Warner introduced S. 3108 to track AI-related layoffs.
Industry voices are mixed: some finance leaders see headcount cuts as an ROI metric, while others emphasise AI as a task-changer that amplifies human skills.

Context and relevance

This story comes as organisations adopt AI faster and governments start to demand visibility on its workforce impact. For HR leaders, talent strategists and C-suite executives, the findings signal urgent choices: scale training, make pathways explicit, and decide how productivity gains are shared. The legislative push to report AI-related layoffs means companies may soon face new transparency and compliance requirements — so workforce planning and clear communication are now business-critical.

Why should I read this?

Short version: it’s getting real and fast. Workers are anxious, firms aren’t yet matching that anxiety with mandatory training or clear career plans, and lawmakers are moving in. If you care about hiring, retention, compliance or just avoiding a morale meltdown, this is worth a quick read — it tells you where the pressure points are and what to act on next.