AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
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AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)

The year 2025 brought no respite for Lebanese language editor and proofreader Hamida Al-Shaker. Before the year had run its course, her decades-long professional journey was abruptly cut short.

Nearly 60, Al-Shaker had never used artificial intelligence tools or held a conversation with ChatGPT, as millions now do. She was unaware that the technologies rapidly spreading across mobile phones and computers were already doing her job, faster and more efficiently than any human could.

That quiet technological advance proved devastating. A sweeping transformation in the labor market became a tsunami, pushing Al-Shaker and millions of workers worldwide toward unemployment, sparing no sector and few age groups. The impact has been particularly harsh on employees over 50 who failed to keep pace with the accelerating speed of technological change.

According to the website allaboutai, the adoption of artificial intelligence has already contributed to the loss of around 14 million jobs globally. And the wave is far from over. As many as 92 million jobs could disappear worldwide over the next five years.

At its core, artificial intelligence enables computer systems to mimic human thinking, make decisions, and execute complex tasks, from planning to practical application, particularly in editorial and knowledge-based work.

Shock and an uncertain future

Al-Shaker was unaware of this reality, a fact that led to a shock, followed by another, during 2025, which saw the widest spread yet of AI applications. The first shock came when she received a call from the human resources department informing her that her salary would be cut by 50 percent due to “financial difficulties facing the company.” Less than five months later, a second call informed her that she was being laid off, without explanation.

According to Al-Shaker, citing her department head, she was not alone. Half of the team lost their jobs due to the impact of artificial intelligence on client contracts, as companies increasingly turned to AI to draft their news, statements, and reports, either for free or at minimal monthly subscription costs, compared with the sums they previously paid to public relations and advertising agencies.

In this context, economic analyses published by Reuters indicate that annual subscriptions to advanced AI tools, even at the enterprise level, often do not exceed the cost of paying a single employee’s salary for a limited number of months. From a purely managerial perspective, this makes such decisions easy to justify financially.

As a result, Al-Shaker and her colleagues became just another figure in a cold equation. Companies boost profits and cut production costs, while growing numbers of workers are pushed out of the labor market, not because they lack competence, but because algorithms are cheaper than people.

Most affected sectors

Al-Shaker’s story is not an isolated case. It is part of a growing global phenomenon affecting workers across multiple sectors. Specialized reports indicate that jobs based on routine tasks or repetitive data processing are most vulnerable, as automation and generative AI tools expand. Among the most affected sectors are:

Customer service and call centers, where intelligent chat systems and text and voice analysis tools can now handle user inquiries with high efficiency, according to TechRT.

Data and administrative support tasks, such as data entry, file classification, and secretarial work, are being replaced by advanced automation tools, according to Complete AI Training.

Retail and supply chains, where self-checkout systems, smart warehouses, and inventory automation have reduced the need for cashiers and traditional warehouse workers, according to Pleeq Software and ninjatech.blog.

Manufacturing and production, where the spread of robots and automated control systems has intensified the impact of AI on manual labor jobs, according to All About AI.

Accounting and financial operations, where demand for basic roles has declined due to reliance on intelligent financial software capable of handling bookkeeping and routine processes, according to Complete AI Training.

Content creation and media, which have not been spared, are now threatened as AI is capable of writing, summarizing, and rewriting content, posing a challenge to a range of basic writing tasks.

Many workers who lost their jobs do not realize that they are victims of the so-called Fourth Industrial Revolution, which Klaus Schwab, founder and executive chairman of the World Economic Forum at the time, warned about years earlier.

Speaking at the World Government Summit in Dubai in 2016, Schwab said the world was “on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another.”

He added that the scale, scope, and complexity of the changes would be unprecedented, and that while their exact shape remained unclear, the response would have to be integrated and comprehensive across the public and private sectors, academia, and civil society.

Market demands and human skills

Much of what Schwab predicted has now come to pass, particularly in recent months, as companies worldwide accelerate their adoption of AI tools. Experience alone is no longer enough to remain competitive in the labor market. Traditional jobs are changing rapidly, and the required human skills have become more specialized and complex, with greater emphasis on working alongside intelligent systems and turning information into added value.

Professionals who understand how to integrate AI tools into their daily work without sacrificing quality or analytical depth are increasingly in demand, according to Maziad Hijaz‏, Editor-in-Chief at Hewar Group‏ in Riyadh.

Hijaz told Asharq Al-Awsat that artificial intelligence has become an essential part of daily work in terms of speed and volume, while review, editing, and analysis remain entirely human responsibilities to ensure quality.

He added that the sector now requires new skills, and those who fail to adapt will be left behind. These include utilizing AI tools for writing and analysis, developing data literacy, employing predictive analysis, and transforming information into compelling narratives. Combining human skills with AI tools is what ensures excellence.

Firas Barakat, a strategic communications expert in Saudi Arabia, said AI represents a pivotal turning point in labor markets, enhancing efficiency while reshaping the nature of jobs and required skills.

Speaking to Asharq Al-Awsat, Barakat said AI has undoubtedly caused the loss of traditional roles involving routine tasks, but at the same time, it is a major engine for generating new jobs in advanced fields such as data analysis, cybersecurity, smart systems management, and digital solutions engineering, roles that did not exist just a few years ago.

History repeats itself

Technology expert Hassan Yahya, based in the United States, offered a historical perspective. He said this is not the first time the world has been stunned by technological advances, noting that similar fears over job losses have accompanied every major innovation.

He pointed to 1959, when General Motors introduced the industrial robot Unimate, triggering widespread warnings about threats to employment.

Yahya said that AI is already affecting millions of jobs, with projections from the World Economic Forum indicating that 92 million jobs will disappear over the next five years. However, more than 170 million new jobs are expected to be created, meaning a fundamental transformation of work rather than mass unemployment.

He added that eliminating jobs without replacing them does not serve companies or economies, making the creation of new roles inevitable. However, this requires learning how to work with AI, as ignoring the shift could leave many people outside a rapidly changing labor market.

Cost-cutting and profit maximization

The experiences of employees cannot be separated from a recurring economic equation that is evident in thousands of companies worldwide. Instead of retaining experienced staff with associated salaries, insurance, and end-of-service benefits, many firms are opting to replace them with AI.

A World Economic Forum report found that 41 percent of global companies plan to reduce their workforce by 2030 due to increased reliance on AI and automation.

Hijaz said AI adoption has also reshaped relationships with clients, accelerating work and significantly improving quality. He cited a Deloitte study showing that integrating AI into public relations reduced content production time by 25 to 35 percent while improving accuracy.

A market worth billions

The gains are split between business owners and AI companies, whose financial returns contrast sharply with the reality faced by thousands of displaced workers. In mid-2025, a Reuters report stated that OpenAI, the developer of ChatGPT, had reached annual revenues of around $10 billion by the end of the first half of the year, on track to exceed $12.7 billion by year's end, driven by surging demand for its services.

This growth is not limited to OpenAI. A Forbes report showed that other global technology companies with AI divisions are generating billions of dollars in additional annual revenue, making AI one of the most important profit sources for major tech firms, even as some lay off staff to improve cost efficiency.

Key players

The main players in the sector include OpenAI, best known for ChatGPT and a leader in large language models, with a strategic partnership with Microsoft.

Google DeepMind follows, having developed powerful models such as Gemini and AlphaGo, and leading in scientific, medical, and research-oriented AI.

Microsoft itself has become a global force in AI, investing billions in OpenAI and integrating AI across Windows, Office through Copilot, and Azure AI.

NVIDIA focuses on developing the chips and processors that power AI, while Meta offers open-source models such as LLaMA. Amazon Web Services leads in cloud-based AI, and Anthropic has emerged as a strong competitor in the field of language models.

The global AI market was estimated at around $747.9 billion in 2025 and is projected to grow to $2.74 trillion by 2032, according to AffMaven.

Concerns over consequences

The stark contrast between multibillion-dollar AI revenues and the growing risk facing millions of workers raises a central ethical and economic question. Why do companies benefit from technology to cut costs and boost profits while often postponing or ignoring their social responsibility toward displaced employees?

Economists warn that such savings are frequently achieved without genuine retraining efforts or alternative job creation, deepening global unemployment rather than addressing it.

Islam Al-Shafii, an economist based in New York, cited remarks by US Federal Reserve Chair Jerome Powell on Dec. 20, warning of waves of layoffs linked to AI or companies halting job postings for the same reason.

Al-Shafii said the current fear of AI remains precautionary, as it has not yet fully replaced humans. The real risk, he said, is that work previously requiring five employees can now be done by one person using AI.

He added that while some professions remain relatively safe for now, such as skilled trades, concerns persist over safety and decision-making, with international organizations expressing reservations.

Breaking monopolies

Yahya argued that confronting these changes requires breaking three major monopolies: the monopoly of university degrees in hiring, as companies like Google and Dell focus on skills rather than diplomas; the technological monopoly, as AI empowers individuals to execute ideas without large teams; and the language monopoly, as AI allows interaction in native languages, opening the digital economy to millions.

The digital economy is expected to exceed $24 trillion by 2025, accounting for approximately 21 percent of the global economy and growing faster than traditional sectors.

Capitalism under strain

Al-Shafii warned that advanced capitalist societies, which rely heavily on tax revenues from employees, could face systemic strain if jobs are replaced by AI. Without a sufficient tax base, governments may struggle to fund essential services, which can potentially lead to social instability and collapse.

He noted that business owners who once built factories in East Asia for cheap labor are now returning home to rely on robots for production.

United Nations concern

The issue has also reached the United Nations, particularly at its headquarters in New York. Al-Shafii stated that there is a deep concern over AI, but institutions often focus on gains while overlooking the associated losses.

He noted that AI supports many sustainable development goals and cybersecurity efforts, but its negative aspects, including cyber fraud and surveillance risks, have yet to be fully addressed. UN Secretary-General Antonio Guterres has repeatedly warned against militarizing AI and entrusting humanity’s future to algorithms.

Threat or opportunity?

Concerns over AI extend beyond job losses to issues of transparency and information security. Hijaz said AI requires greater responsibility to ensure accuracy and disclosure.

Asked whether AI is a threat or an opportunity, he said it is an inevitable development that must be harnessed. Like the computer and the internet before it, initial fears will likely give way to empowerment.

He added that creativity remains a uniquely human value that AI cannot replace, and that technology enhances rather than eliminates it.

Not a replacement

Translation professor Mohammed Khair Nadman told Asharq Al-Awsat that AI tools now save around 60 percent of time in translation and writing, supporting but not fully replacing human work. He warned that AI can still make serious errors, making human oversight essential.

M. A. Hadi, MD, Head of the Department of Pathology at a hospital in the United States, said that the current wave of misinformation fueled by easy access to online medical content and artificial intelligence "will not last long if simple regulations are put in place".

He explained that reading medical information online or collecting data through AI does not make someone a physician, just as reading news does not make a journalist, nor learning about car engines makes one a mechanic. "In the same way," he noted, "having extensive legal knowledge through AI does not qualify someone to be accepted in court as a lawyer."

Dr. Hadi added that while such knowledge can empower individuals to ask better and more informed questions, it does not replace professional expertise. "AI can help people engage more effectively with professionals and may even push experts to become more transparent and ethical, reducing the space for fraud, middlemen, and bad practices," he said.

Quoting the Arabic proverb "give your bread to the baker, even if he eats half of it", Dr. Hadi stressed that while the "do-it-yourself" mindset has always existed and can be useful, real work must still be done by qualified experts. "Artificial intelligence will likely make professionals better, as general knowledge continues to expand," he said, "but professional training, experience, and licensing cannot and should not be granted to laypeople, even if they are well-read or AI-assisted."

He warned that partial or incomplete knowledge can be more harmful than helpful when applied in practice, concluding that, ultimately, "the evidence is in the results."

A final attempt

Al-Shaker, living in crisis-hit Lebanon without a private sector pension system, believed her regional company job was secure. After losing it, she tried to catch up, creating a LinkedIn account, registering on job platforms, taking free online courses, and sending dozens of resumes, often receiving automated or no responses.

Her story reflects the dilemma of an entire generation pushed out of the market, not due to lack of competence, but because the rules changed abruptly.

She ended with a bitter question: Nearly two centuries after the Industrial Revolution sparked the call, “Workers of the world, unite,” will there now be a call saying, “Employees of the world, unite?”



Khartoum Markets Back to Life but 'Nothing Like Before'

Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
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Khartoum Markets Back to Life but 'Nothing Like Before'

Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)
Men walk along a street past destroyed high-rise building, as efforts to restore the city's infrastructure resumes after nearly three years of devastation caused by war, in the Sudanese capital Khartoum on January 17, 2025. (AFP)

The hustle and bustle of buyers and sellers has returned to Khartoum's central market, but "it's nothing like before," fruit vendor Hashim Mohamed told AFP, streets away from where war first broke out nearly three years ago.

On April 15, 2023, central Khartoum awoke to battles between the Sudanese army and the paramilitary Rapid Support Forces, who had been allies since 2021, when they ousted civilians from a short-lived transitional government.

Their war has since killed tens of thousands and displaced millions. In greater Khartoum alone, nearly 4 million people -- around half the population -- fled the city when the RSF took over.

Hashim Mohamed did not.

"I had to work discreetly, because there were regular attacks" on businesses, said the fruit seller, who has worked in the sprawling market for 50 years.

Like him, those who stayed in the city report living in constant fear of assaults and robberies from fighters roaming the streets.

Last March, army forces led an offensive through the capital, pushing paramilitary fighters out and revealing the vast looting and destruction left behind.

"The market's not what it used to be, but it's much better than when the RSF was here," said market vendor Adam Haddad, resting in the shade of an awning.

In the market's narrow, dusty alleyways, fruits and vegetables are piled high, on makeshift stalls or tarps spread on the ground.

- Two jobs to survive -

Khartoum, where entire neighborhoods were once under siege, is no longer threatened by the mass starvation that stalks battlefield cities and displacement camps elsewhere in Sudan.

But with the economy a shambles, a good living is still hard to provide.

"People complain about prices, they say it's too expensive. You can find everything, but the costs keep going up: supplies, labor, transportation," said Mohamed.

Sudan has known only triple-digit annual inflation for years. Figures for 2024 stood at 151 percent -- down from a 2021 peak of 358.

The currency has also collapsed, going from trading at 570 Sudanese pounds to the US dollar before the war to 3,500 in 2026, according to the black market rate.

One Sudanese teacher, who only a few years ago could provide comfortably for his two children, told AFP he could no longer pay his rent with a monthly salary of 250,000 Sudanese pounds ($71).

To feed his family, pay for school, and cover healthcare, he "works in the market or anywhere" on his days off.

"You have to have another job to pay for the bare minimum of basic needs," he said, asking for anonymity to protect his privacy.

For Adam Haddad, the road to recovery will be a long one.

"We don't have enough resources or workers or liquidity going through the market," he said, adding that reliable electricity was still a problem.

"The government is striving to restore everything, and God willing, in the near future, the power will return and Khartoum will become what it once was."


Trump Heads into Davos Storm, with an Eye on Home

FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)
FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)
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Trump Heads into Davos Storm, with an Eye on Home

FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)
FILE - President Donald Trump is illuminated by a camera flash as he gestures while walking across the South Lawn of the White House, Nov. 2, 2025, in Washington, after returning from a trip to Florida. (AP Photo/Mark Schiefelbein, File)

Donald Trump returns to the Davos ski resort next week after unleashing yet another avalanche on the global order. But for the US president, his main audience is back home.

Trump's first appearance in six years at the gathering of the world's political and global elite comes amid a spiraling crisis over his quest to acquire Greenland.

Fellow leaders at the mountain retreat will also be eager to talk about other shocks from his first year back in power, from tariffs to Venezuela, Ukraine, Gaza and Iran.

Yet for the Republican president, his keynote speech among the Swiss peaks will largely be aimed at the United States.

US voters are angered by the cost of living despite Trump's promises of a "golden age," and his party could be facing a kicking in crucial midterm elections in November.

That means Trump will spend at least part of his time in luxurious Davos talking about US housing.

A White House official told AFP that Trump would "unveil initiatives to drive down housing costs" and "tout his economic agenda that has propelled the United States to lead the world in economic growth."

The 79-year-old is expected to announce plans allowing prospective homebuyers to dip into their retirement accounts for down payments.

Billionaire Trump is keenly aware that affordability has become his Achilles' heel in his second term. A CNN poll last week found that 58 percent of Americans believe his first year back in the White House has been a failure, particularly on the economy.

Trump's supporters are also increasingly uneasy about the "America First" president's seemingly relentless focus on foreign policy since his return to the Oval Office.

But as he flies into the snowy retreat, Trump will find it impossible to avoid the global storm of events that he has stirred since January 20, 2025.

Trump will be alongside many of the leaders of the same European NATO allies that he has just threatened with tariffs if they don't back his extraordinary quest to take control of Greenland from Denmark.

Those threats have once again called into question the transatlantic alliance that has in many ways underpinned the western economic order celebrated at Davos.

- 'Economic stagnation' -

So have the broader tariffs Trump announced early in his second term, and he is set to add to the pressure on Europe in his speech.

Trump will "emphasize that the United States and Europe must leave behind economic stagnation and the policies that caused it," the White House official said.

The Ukraine war will also be on the cards.

Ukrainian President Volodymyr Zelensky is hoping for a meeting with Trump to sign new security guarantees for a hoped-for ceasefire deal with Russia, as are G7 leaders.

But while the largest-ever US Davos delegation includes Secretary of State Marco Rubio, special envoy Steve Witkoff and son-in-law Jared Kushner, who have all played key roles on Ukraine, no meeting is assured.

"No bilateral meetings have been scheduled for Davos at this time," the White House told AFP.

Trump is meanwhile reportedly considering a first meeting of the so-called "Board of Peace" for war-torn Gaza at Davos, after announcing its first members in recent days.

Questions are also swirling about the future of oil-rich Venezuela following the US military operation to topple its leader Nicolas Maduro, part of Trump's assertive new approach to his country's "backyard."

But Trump may also pause to enjoy his time in the scenic spot he called "beautiful Davos" in his video speech to the meeting a year ago.

The forum has always been an odd fit for the former New York property tycoon and reality TV star, whose brand of populism has long scorned globalist elites.

But at the same time, Trump relishes the company of the rich and successful.

His first Davos appearance in 2018 met occasional boos but he made a forceful return in 2020 when he dismissed the "prophets of doom" on climate and the economy.

A year later he was out of power. Now, Trump returns as a more powerful president than ever, at home and abroad.


Russia, China Unlikely to Back Iran Against US Military Threats

A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)
A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)
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Russia, China Unlikely to Back Iran Against US Military Threats

A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)
A man stands by the wreckage of a burnt bus bearing a banner (unseen) that reads "This was one of Tehran’s new buses that was paid for with the money of the people’s taxes,” in Tehran's Sadeghieh Square on January 15, 2026. (AFP)

While Russia and China are ready to back protest-rocked Iran under threat by US President Donald Trump, that support would diminish in the face of US military action, experts told AFP.

Iran is a significant ally to the two nuclear powers, providing drones to Russia and oil to China. But analysts told AFP the two superpowers would only offer diplomatic and economic aid to Tehran, to avoid a showdown with Washington.

"China and Russia don't want to go head-to-head with the US over Iran," said Ellie Geranmayeh, a senior policy expert for the European Council on Foreign Relations think tank.

Tehran, despite its best efforts over decades, has failed to establish a formal alliance with Moscow and Beijing, she noted.

If the United States carried out strikes on Iran, "both the Chinese and the Russians will prioritize their bilateral relationship with Washington", Geranmayeh said.

China has to maintain a "delicate" rapprochement with the Trump administration, she argued, while Russia wants to keep the United States involved in talks on ending the war in Ukraine.

"They both have much higher priorities than Iran."

- Ukraine before Iran -

Despite their close ties, "Russia-Iranian treaties don't include military support" -- only political, diplomatic and economic aid, Russian analyst Sergei Markov told AFP.

Alexander Gabuev, director of Carnegie Russia Eurasia Center, said Moscow would do whatever it could "to keep the regime afloat".

But "Russia's options are very limited," he added.

Faced with its own economic crisis, "Russia cannot become a giant market for Iranian products" nor can it provide "a lavish loan", Gabuev said.

Nikita Smagin, a specialist in Russia-Iran relations, said that in the event of US strikes, Russia could do "almost nothing".

"They don't want to risk military confrontation with other great powers like the US -- but at the same time, they're ready to send weaponry to Iran," he said.

"Using Iran as a bargaining asset is a normal thing for Russia," Smagin said of the longer-term strategy, at a time when Moscow is also negotiating with Washington on Ukraine.

Markov agreed. "The Ukrainian crisis is much more important for Russia than the Iranian crisis," he argued.

- Chinese restraint -

China is also ready to help Tehran "economically, technologically, militarily and politically" as it confronts non-military US actions such as trade pressure and cyberattacks, Hua Po, a Beijing-based independent political observer, told AFP.

If the United States launched strikes, China "would strengthen its economic ties with Iran and help it militarize in order to contribute to bogging the United States down in a war in the Middle East," he added.

Until now, China has been cautious and expressed itself "with restraint", weighing the stakes of oil and regional stability, said Iran-China relations researcher Theo Nencini of Sciences Po Grenoble.

"China is benefiting from a weakened Iran, which allows it to secure low-cost oil... and to acquire a sizeable geopolitical partner," he said.

However, he added: "I find it hard to see them engaging in a showdown with the Americans over Iran."

Beijing would likely issue condemnations, but not retaliate, he said.

Hua said the Iran crisis was unlikely to have an impact on China-US relations overall.

"The Iranian question isn't at the heart of relations between the two countries," he argued.

"Neither will sever ties with the other over Iran."