Artificial Intelligence and the Labor Market 2025: analyzed how technologies are changing jobs, professions, and employer expectations
Artificial intelligence has become one of the main drivers transforming the labor market, changing company structures and creating entirely new professional directions. In recent years, its impact has become so noticeable that the discussion is no longer about forecasts, but about the reality in which both global tech corporations and Ukrainian companies already live. Time for Action analyzed how AI specifically affects layoffs, recruitment, the emergence of new professions, and expectations for candidates, as well as the risks and opportunities this creates.
This transformation is based on the desire to optimize resources and accelerate technology development. This is why the most significant informational effect was caused by massive layoffs at global tech giants. The implementation of artificial intelligence at Microsoft and IBM was directly linked to the dismissal of about 9,000 and 8,000 employees, respectively. Microsoft’s commercial director Judson Althoff, explaining the efficiency of AI in call centers, directly stated about “savings of more than $500 million a year” and emphasized that “AI already generates 35% of the code for new products.” This is not a forecast, but a characterization of the current state, demonstrating the real dependence of product companies on automation.
The position of Meta’s founder was also indicative. Mark Zuckerberg stated that as early as 2025, companies would have AI that can “be an effective mid-level engineer and write code.” Shortly after, Meta announced a 5% reduction in staff. Similar trends were confirmed by Anthropic director Dario Amodei, predicting that artificial intelligence could eliminate half of all entry-level “white-collar” jobs within five years. The most vulnerable are routine and repetitive tasks: Junior Data Engineers, business analysts, operational support.
However, the real picture of the difference between fears and facts is much more complex. According to Challenger, Gray & Christmas, only 75 of nearly 287,000 layoffs in 2025 were directly related to AI. The rest resulted from the economic situation and restructuring. Another important observation: according to an Orgvue survey, more than half of executives regret layoffs due to AI. This shows that chaotic automation without process analysis can be not a strategy, but a costly mistake.
Despite the risks, AI is actively penetrating the most sensitive area recruitment. Amazon’s early attempts to implement AI in hiring in 2014 failed due to discrimination against women: the algorithm favored male candidates because it was trained on historical data. The company acknowledged this case and abandoned the specific model, but not the idea. Today, 88% of international companies use AI tools for sourcing, analyzing CVs, and initial interviews.
Ukrainian companies are adapting no less rapidly. Netpeak Group has created its own system, LITI, which analyzes the textual version of a candidate’s 5- or 20-minute conversation. According to Chief Artificial Intelligence Officer Serhii Sauta, “for 1,000 candidates, LITI worked autonomously and provided independent results without the need for additional support from my side.” The model evaluates word choice, sentence structure, reaction to stimuli, content and style of communication. The system works according to 110 criteria, converting the result into a percentage of compliance with the ideal profile. At the same time, the company emphasizes that these are recommendations, not a final verdict: the decision is made by the manager.
Laba Group uses AI to adapt job texts, create scorecards, and write personalized responses to candidates. “The recruiter analyzes the received responses, compares them with expectations using AI, and makes changes to the wording,” explains Global HR Director Kateryna Hlushchenia. SKELAR, in turn, has automated processes from resume processing to message generation, reducing routine tasks by 30%.
EPAM uses AI at every stage of hiring: from candidate analysis to checking whether a candidate used AI when performing test tasks. This allows the avoidance of falsifications and better assessment of real skills.
Despite the active implementation of AI, Ukrainian candidates often treat such models with caution. One of them Full Stack developer Stanislav emphasized that artificial intelligence creates a “layer whose opaque work results either adjust or even create a candidate’s image,” which can affect trust in the process. Other candidates, such as editor Kateryna, say the same thing: although they are assured that AI only evaluates speech, the system remains opaque, and the decision-making moments are unclear.
The global legislative field is also undergoing transformation. The EU has adopted the AI Act, which prohibits non-transparent high-risk AI systems, including those that may violate human rights during hiring. In Ukraine, the Ministry of Digital Transformation proposed in the “White Paper” to introduce mandatory regulation and implement the European approach. Some Ukrainian companies Grammarly, SoftServe, Uklon, and others have already signed a memorandum on the ethical use of AI. A new slice of professions related to generative models is emerging in the labor market. Kyivstar.Tech is looking for a Business Analyst, Business Intelligence Analyst, Golang Developer, and is preparing to expand in LLM technologies. SKELAR has open vacancies for AI Product Manager, AI Engineer, AI Video Production Specialist. EPAM highlights three key groups: ML and MLOps specialists, GenAI experts, and AI Native Teamsteams that integrate AI into the development cycle.
Olena Pavlidi’s story shows another side of AI’s impact. Having lost her job due to the war, she moved into the field of visual AI communications, created a new specialization from scratch, and participated in international festivals with her AI-backed film. She directly says that the statement “AI takes jobs” is a simplification. “Only a few will be able to create and monetize quality AI content,” she notes, criticizing the abundance of low-quality AI effects on social networks that shape biases.
For many employers, the ability to work with AI has already become mandatory. At Genesis, they say: “AI will not replace people, but people who use AI can replace those who do not use it.” At Netpeak Group, learning AI is part of onboarding, and the course “From Beginner to AI Expert” has attracted more than 79,000 Ukrainians. Kiss My Apps is working on its own AI tools that allow the entire team to interact with more than 150 models through a single interface.
At the same time, experts such as Kateryna Hlushchenia emphasize: AI can replace standardized tasks copywriting, routine data analysis, junior work. But it will not replace empathy, context, the ability to build relationships, and think outside the box.
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Artificial intelligence does not destroy the labor market, but rebuilds it. Layoffs at tech giants are only part of the picture. Real trends show something else: companies that systematically implement AI do not replace people, but free them from routine, strengthen teams, and increase business competitiveness. Ukrainian companies keep up with global practices and are forming their own approaches to AI use.
Artificial intelligence is becoming the new language of professional competence. Those who are not afraid to learn, interpret, adapt, and integrate tools into work processes will benefit. And the market gradually but inevitably is moving to a model where the main value belongs not to technology, but to the person who can control it.
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