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A new report suggests that artificial intelligence is initially impacting outsourced and offshore roles more significantly than internal staff positions. While the immediate risk to jobs remains relatively low, at around 3%, the long-term outlook points to a potential displacement of approximately 27% of roles. Companies are increasingly leveraging AI to replace Business Process Outsourcing (BPO), resulting in substantial cost savings. Industries like tech and media are anticipated to experience reduced hiring in the coming years.

Although sales and marketing tools receive a significant portion of AI investment, the report highlights that back-office automation offers a potentially higher return on investment. In a surprising twist, 95% of organizations investing in generative AI are yet to witness a tangible return on investment. However, observed productivity gains hint at a possible “Goldilocks scenario” where earnings increase without widespread layoffs.

The original discussion can be found on Reddit: https://old.reddit.com/r/artificial/comments/1mtt0fh/where_ai_job_cuts_are_happening_first/.