Worries regarding the impact of AI on the workforce are escalating along with the rapid progress and new innovations that promise automation and enhanced efficiency.

Data indicates that these concerns are justified.

A study from MIT conducted in November estimated that approximately 11.7% of jobs could be automated utilizing AI. Polls have revealed that employers are already cutting entry-level positions due to this technology. Firms are also citing AI as a factor in their layoffs.

As businesses increasingly integrate AI, some might reassess their actual need for staff.

In a recent TechCrunch poll, several enterprise venture capitalists mentioned that AI is expected to significantly influence the enterprise workforce by 2026. This was particularly intriguing as the survey did not specifically address this topic.

Eric Bahn, a co-founder and general partner at Hustle Fund, anticipates seeing impacts on employment by 2026, though he is uncertain about the specifics.

“I want to observe which roles typically characterized by repetitiveness get automated, or if even more complex positions involving logic become increasingly automated,” Bahn remarked. “Will this result in more layoffs? Will productivity surge? Or will AI merely augment the present labor market to enhance future productivity? All these questions remain largely unanswered, but it appears something significant is slated for 2026.”

Marell Evans, founder and managing partner at Exceptional Capital, predicted that firms aiming to boost AI investments will divert funds from their labor and hiring budgets.

“I believe that alongside a gradual increase in AI budgets, we’ll witness more cuts in human labor, with layoffs persistently affecting the U.S. employment rate,” Evans stated.

Rajeev Dham, managing director at Sapphire, concurred that budgets in 2026 will begin reallocating resources from labor to AI. Jason Mendel, a venture investor at Battery Ventures, remarked that AI will evolve beyond being just a tool that enhances efficiency for current workers by 2026.

“2026 will mark the year of agents as software transitions from boosting human productivity to automating work itself, fulfilling the human-labor displacement value proposition in specific sectors,” Mendel commented.

Antonia Dean, a partner at Black Operator Ventures, mentioned that even if companies aren’t reallocating labor budgets for AI initiatives, they will likely still attribute layoffs or reductions in labor costs to AI.

“The complexity lies in the fact that many organizations, regardless of their preparedness for effectively utilizing AI solutions, will claim they are increasing AI investments to justify spending cuts in other areas or workforce reductions,” Dean noted. “In truth, AI will serve as a scapegoat for executives attempting to account for prior missteps.”

Numerous AI firms assert that their technologies do not eliminate jobs but instead facilitate a transition of workers to “deep work” or more specialized roles while AI automates repetitive “busy work.”

However, not everyone is convinced by that viewpoint, and many are concerned their positions will be automated. According to venture capitalists who invest in the field, it seems those anxieties will not be alleviated in 2026.