While artificial intelligence promises to make our lives easier, the Treasury Department has issued a stark warning about its potential to eliminate millions of jobs across America. The numbers paint a concerning picture that affects workers from fast food restaurants to accounting firms.
The Treasury Department warns AI could eliminate millions of American jobs from restaurants to accounting firms.
According to recent studies, AI could wipe out up to half of all entry-level office jobs within just one to five years. This dramatic shift might push unemployment rates between 10% and 20%, creating challenges not seen since major economic downturns.
McKinsey researchers estimate that AI might automate 60% to 70% of work activities that employees currently handle every day.
The scale of potential job loss is staggering. Goldman Sachs predicts approximately 300 million full-time positions could disappear globally due to automation. Meanwhile, ChatGPT-based models suggest nearly 97 million American jobs might vanish within the next decade.
Fast food workers face the highest risk at 89%, followed by accountants at 64% and truck drivers at 47%.
The government itself is already experiencing these changes firsthand. The IRS has cut its workforce by 11%, eliminating over 11,000 positions since the current administration began.
Treasury officials claim AI and automation will maintain tax collection efficiency despite fewer human workers. Revenue officers saw 18% cuts, revenue agents faced 31% reductions, and tax examiners dropped by 10%. Treasury Secretary Bessent emphasizes that smarter IT solutions will improve enforcement efficiency without increasing staffing levels.
Congress is responding with the AI-Related Job Impacts Clarity Act, which would require large companies to report quarterly on AI-driven layoffs and hiring. This legislation aims to create the first exhaustive national database tracking how artificial intelligence affects employment across different industries. Companies must submit quarterly reports documenting everything from employee replacements to new AI-related positions they’ve created.
The Trump Administration has launched executive orders focusing on AI education and worker retraining programs. These initiatives include funding for rapid retraining of displaced workers and tax incentives encouraging employers to invest in AI skill development.
The Bureau of Labor Statistics now conducts scenario planning to understand AI’s long-term effects on jobs. Similar to how trading strategies lose effectiveness as they become widely adopted, AI-powered job automation may accelerate as more companies implement these technologies.
Former Treasury Secretary Summers has warned that these combined pressures could trigger a recession affecting 2 million workers, making preparation and adaptation more vital than ever.
