In April 2025, Shopify CEO Tobi Lütke shared an internal memo with all his employees (which he then posted on X), stating that they must demonstrate why AI cannot perform a job before requesting new hires. Shopify is not the only company taking this approach; other major tech firms like Klarna and Uber (just to name a few) have also publicly embraced AI-driven productivity for internal processes and labor. Meanwhile, a growing number of Gen Z students are questioning the value of traditional college education, believing that AI makes this investment a waste of time and money.
These are the kinds of news stories that spark fear and anxiety. I mean, there are bus stop ads in San Francisco from companies offering artificial employees for hire. Naturally, when faced with such a rapidly evolving and effective technology, it is hard not to question ourselves. Will we remain relevant in our jobs? And if so, for how long? Part of the answer can be found in my previous article Does AI Need Humans to Evolve?, which makes the case for the value of human-crafted content in the very development of AI.
Nevertheless, we cannot all be writers and artists, getting paid to create content to “feed the machine”. The combine harvester was a disruptive technology that revolutionized agriculture, displacing many farmworkers but ultimately leading to greater efficiency. With AI, however, we are talking about every sector of activity, including physicians, lawyers, accountants, artists, and even manual labor (intelligent machinery and robotics). The potential for disruption goes beyond a mere economic transition—we are facing a true paradigm shift at the scale of our civilization.
Big Tech’s Productivity Pivot versus the Small Business Reality
The signals from major technology companies are unmistakable. Once voracious recruiters competing for talent, these companies have dramatically slowed their hiring. Instead, they are turning inward, leveraging AI to boost internal productivity. These companies have the resources, technical expertise, and organizational flexibility to rapidly integrate AI into their workflows. Their shareholders applaud as productivity metrics climb. The narrative of “doing more with less” has become the new corporate mantra in boardrooms across Silicon Valley.
In contrast, the employment landscape looks markedly different beyond the tech giants. Small and medium-sized enterprises (SMEs) employ most of the workforce in developed economies. These businesses often lack the technical infrastructure, expertise, or leadership awareness to implement AI solutions effectively. The reasons for not upgrading substantially are varied: limited understanding of AI capabilities, concerns about implementation costs, organizational inertia, and, in many cases, legitimate questions about whether current AI solutions truly fit their specific business needs.
The Advent of Solopreneurs and Tiny Firms
AI, especially agentic AI, is poised to redefine the concept of solopreneurship by enabling individuals to leverage advanced tools and operate at scales previously reserved for larger organizations. At the time I am writing these words, it is difficult to have the necessary perspective to see objectively what is happening, as this is unfolding right now. But from my perspective, here are the consequences of the advent of the “one-man team”:
- Lost headcount in traditional employment can be offset by a dramatically increased number of solopreneurs, as AI removes technical and operational barriers for individuals starting their own ventures.
- These new micro-businesses have the potential to disrupt the economy by being highly competitive, primarily through aggressive cost-cutting.
- A significant portion of these tiny companies often targets the sector of AI counseling and education for SMEs, helping established businesses adjust and adopt AI-powered productivity pivots. Ironically, this may accelerate the transition of SMEs toward automation and, in the process, further slow down hiring.
The Consumer Paradox
The fundamental paradox of widespread automation is this: if AI significantly reduces employment opportunities, who will have the income to purchase the products and services these increasingly automated businesses produce?
This question reveals the circular nature of our economic system. Workers are also consumers. When productivity gains from technology are concentrated among shareholders rather than distributed across society, the result is a shrinking consumer base. History has shown repeatedly that extreme wealth concentration eventually undermines economic growth.
This reality suggests that some form of regulation or economic restructuring will be necessary, including for the instigators of mass automation themselves. Options actively being debated include:
- AI taxation - Taxing productivity gains from AI to fund social programs or universal basic income.
- Mandatory profit-sharing - Requiring companies to distribute AI-driven productivity gains among workers.
- Reduced working hours - Maintaining employment levels by shortening the standard work week.
- Education subsidies - Government funding for continuous learning and reskilling programs.
Conclusion: Staying Relevant in the AI Era
Before reaching peak AI efficiency, as well as nuclear fusion to match the energy demand of such a mass deployment of intelligent systems, it is reasonable to say that jobs are relatively safe. However, while jobs may not disappear soon, employees are and will. For instance, where 10 developers were needed, maybe 3 working with AI tools may be enough to sustain at least the same level of production.
In other words, as Shopify’s CEO said to his employees, it is crucial to keep up with technological inflation and stay informed about the latest workflow processes in order to remain competitive as the job market in certain areas shrinks. And, as many Gen Z thinks, understanding the new AI productivity landscape may outweigh diplomas and experience in certain scenarios and for some recruiters. This suggests a practical approach for navigating the transition:
- Become an AI power user - Deeply understand how AI tools can enhance your specific role.
- Focus on uniquely human skills - Develop capabilities that complement rather than compete with AI.
- Cultivate adaptability - Build habits of continuous learning and experimentation.
- Seek augmentation, not replacement - Look for ways AI can handle routine aspects of your work while you focus on higher-value activities.
The economic transition triggered by AI will undoubtedly create disruption, but it also presents unprecedented opportunities for those willing to embrace change. The question is not whether AI will transform the economy—it’s already happening—but how we as individuals and societies choose to respond to that transformation.
To Cite This Article
@misc{SadouneBlog2025b,
title = {AI Anxiety: Will You Lose Your Job?},
author = {Igor Sadoune},
year = {2025},
url = {https://sadoune.me/posts/ai_economic_transition/}
}