July 21, 2025

AI spurs decline in high-paid tech jobs, report finds

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A report from Stanford University reveals how artificial intelligence is redrawing the skills map across industries. High-paying technical roles are losing ground as AI systems become more capable, while demand for interpersonal and coordination-based skills is rising.

Growing Demand for Interpersonal and Human-Centred Skills

The Stanford study reports that human-centred skills, especially those difficult to automate, are gaining importance. The researchers found that “skills requiring human interaction and coordination, such as prioritising and organising work and training, teaching and effective communication, will grow in importance and command higher pay.”

A Gap Between AI Capabilities and Worker Expectations

Stanford researchers surveyed 1,500 workers and gathered expert input from 52 AI specialists to understand how AI aligns with actual workplace needs. They discovered a wide gap between what employees want AI to do and what the technology can currently accomplish.

The study found that “in 41% of tasks, including writing creative content and preparing meeting agendas, AI implementation was either unwanted or technically not possible.” Meanwhile, tasks like budget monitoring and production scheduling lie in an “opportunity zone” — they are highly desired for automation but still out of reach technologically.

Inclusive AI Integration Critical to Future Deployment Success

Stanford researchers emphasise that successful AI integration depends not just on technical capabilities but also on involving employees in decision-making. Yijia Shao, the project lead and a Stanford Computer Science PhD student, warned against top-down deployment strategies.

“As AI systems become increasingly capable, decisions about how to deploy them in the workplace are often driven by what is technically feasible — workers are the ones most affected by these changes and the ones the economy ultimately relies on,” Shao stated.

Shao further emphasised that “bringing employee perspectives to the table is critical to building systems they will embrace,” adding that such involvement “helps reveal overlooked opportunities for AI and guides more human-centred innovation.”

Deloitte Urges Strategy Before Speed

One of the corporate advisors weighing in on the use of generative AI is Deloitte Consulting. In a recent op-ed, the firm cautioned businesses against jumping on the AI bandwagon without clear goals. The firm emphasised the importance of understanding where generative AI fits into an organisation’s operations before investing.

“Organisations that ignore human-centric factors could end up implementing AI and generative AI tools without being completely clear on strategy or business goals,” the consultants warned. They added, “Ultimately, the result of a company’s AI investment will depend on human capabilities like cognisance, curiosity and collaboration.

Employer Preferences Shift Towards Soft Skills

A June survey from talent assessment firm TestGorilla found that 3 in 5 hiring leaders believe soft skills are more important now than five years ago. Additionally, over 70% said a combination of soft and hard skills leads to better hiring outcomes.

“Employers want people who can think critically, adapt and collaborate,” TestGorilla’s CEO noted, reinforcing the market’s pivot towards human-focused competencies.

The new Stanford report showcases the importance of integrating AI into work environments must be grounded in human capabilities.

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