Key developments: The latest Workday Global Workforce Report shows AI is reshaping roles rather than driving mass layoffs. Only 28% of leaders expect AI to cut headcount, while 40% see it as a way to boost productivity from existing staff. However, job ads reveal a rapid shift in skill demand—basic prompting skills dropped 25% after peaking in early 2026, and demand for advanced AI‑building capabilities jumped 51%.
Why it matters: Employers are increasingly looking for employees who can create and integrate AI tools, not just use them, accelerating a skills gap. At the same time, internal mobility is stalling—57% of companies reported fewer internal moves and flat promotion rates—leaving workers with fewer advancement paths. The perception of threat is high, with 62% of heavy AI users fearing their current skills will lose value.
What to watch next: Watch for rising investment in AI‑focused training programs as firms try to close the gap, and for policy responses aimed at protecting workers during this transition. The continued high usage of AI in job searches (84% of seekers) and growing applicant pools suggest competition for AI‑ready talent will intensify, especially in finance, technology, and media sectors.