A TechCrunch survey of venture capital investors highlights expectations that AI adoption will significantly impact the workforce in 2026. Citing an MIT study that 11.7% of jobs could already be automated by AI and reports of employers eliminating some entry-level roles due to AI, investors foresee companies reallocating budgets from human labor to AI tools. Some VCs predict more layoffs as routine tasks become automated, while others suggest AI will augment remaining workers to be more productive. This news is a warning for workers and employers: job-seekers may need to upskill in order to work alongside AI, and companies are likely to seek talent who can develop, manage, or leverage AI systems. In short, AI’s growing enterprise use is poised to shift hiring priorities toward tech-savvy roles while transforming or phasing out certain traditional jobs.

Source – https://techcrunch.com/2025/12/31/investors-predict-ai-is-coming-for-labor-in-2026/