Almost all chief executives expect artificial intelligence to cut their workforce within two years,  according to a new global survey by consulting firm Mercer. 

Mercer’s Global Talent Trends report published recently found that 99% of CEOs surveyed anticipate layoffs tied to automation and AI adoption in the near term. 

According to the survey, 63% of executives believe redesigning work to incorporate AI and automation is most likely to deliver the greatest return on investment, while only 32% said they believe their workforce can effectively combine human and machine capabilities.

Another survey conducted by consulting firm Oliver Wyman in April highlighted entry-level employees as among the workers most vulnerable to job cuts. 

CEOs surveyed said AI is particularly suited to handling routine and repetitive tasks often assigned to younger employees during training and onboarding.

In the first quarter of the year, the job market for workers aged 22 to 27 “deteriorated noticeably,” according to a report from the Federal Reserve Bank of New York. Federal Reserve Chair Jerome Powell later acknowledged that AI may be partly responsible. 

Companies that would have traditionally hired recent graduates are increasingly turning to AI assistants to automate that work, Powell said. According to The New York Times, by the end of the year, the job market for younger workers had become the weakest since the worst period of the COVID-19 pandemic.

Meanwhile, the Mercer survey also found that employee well-being has declined as workers grow increasingly concerned about AI-driven job displacement.

The share of employees considered to be “thriving” fell to 44% in 2026 from 66% in 2024, while 35% of workers said they would consider leaving their organization if they felt disadvantaged by unequal access to AI resources or training opportunities.