AI Is Poised to Impact Employment. The Key Question Is Whether Governments Are Recognizing This Reality.

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      When Marco Riedesser reached out to propose a serious discussion about AI and its impact on jobs, my initial response was likely similar to yours: haven’t we already been discussing this?

      It seems that every day brings another headline about companies laying off thousands of employees and attributing part of it to AI. Each week features stories about recent graduates finding that the entry-level positions they were preparing for may no longer exist in the same format. And every few days, someone claims confidently that this could mark either the beginning of a golden age or the end of work as we know it.

      The reality, as is often the case, is probably more complex.

      That is why I wanted to speak with Marco. He is an entrepreneur from Innsbruck, Austria, approaching this topic from a unique perspective. He is neither an academic theorist nor a doomsayer in the tech industry. He is a hardware expert who has dedicated his career to building tangible products.

      A Friend AI Companion A Friend

      Marco began in the electronics sector. One of his initial ventures developed laser-based training equipment for law enforcement, military, and defense use. Subsequently, he founded Controlino, a company focused on industrial automation. Most recently, he introduced Friend, a physical AI companion intended to be more than just another chatbot.

      This means Marco is not against technology; he creates it. He has a solid understanding of automation, which may explain why his concerns regarding AI's impact on jobs resonate differently.

      He is not advocating for the destruction of machines; rather, he emphasizes the need for proactive planning.

      This is a crucial distinction.

      Why This Time Feels Different

      We have encountered similar situations in the past, at least in broad strokes. Two centuries ago, the industrial revolution transformed factory work through steam, water, and machinery. Later, agricultural automation changed farming. More recently, industrial automation revolutionized manufacturing. In every instance, there were warnings that machines would eliminate jobs, and yet the world continued.

      However, Marco posits that AI may differ in a significant way: he does not see the same magnitude of new replacement jobs emerging.

      While some positions in AI compliance, management, and oversight will arise, if a company lays off 7,000 or 8,000 employees, it isn't likely to replace those roles with an equal number of AI compliance officers. The math simply doesn't add up. He believes the impact may be particularly severe for entry-level positions.

      The Entry-Level Jobs Issue

      This is where the conversation takes a more uncomfortable turn.

      For years, the advice to young people was straightforward: learn coding, take STEM courses, and acquire technical skills. The future was said to belong to software. Now, Marco is advising his own nephew not to assume that coding will be a guaranteed safe career choice. He believes that entry-level coding jobs are already diminishing, and even more advanced coding positions may undergo significant changes over the next five years.

      He outlined a scenario where a developer is no longer manually writing code the traditional way. Instead, he interacts with an AI agent, explaining what changes need to be made, correcting it, and guiding it toward the desired outcome. This still requires expertise today. However, Marco foresees a shift in the role from coder to something akin to a director, where one visionary individual manages the AI, while much of the routine coding work becomes automated.

      Marco was careful to clarify that not all jobs will vanish. Those involving genuine physical interaction, human trust, or craftsmanship may be more resilient. A carpenter must still physically build a kitchen, and a hairdresser maintains a personal relationship with clients. There will always be contexts where people prefer dealing with other humans, even in situations where technology could technically fulfill the role.

      Nonetheless, numerous job categories remain vulnerable. Fields such as customer service, call centers, sales support, transportation, factory work, and entry-level software development are not niche sectors; they are major entry points into the workforce.

      What If Work Changes?

      AI is not coming alone; it is accompanied by robotics. Marco highlighted the presence of robots in factories, autonomous driving technologies, transportation automation, and the prospect of broader physical automation. AI might originate as software, but it won’t remain confined to computers.

      Here, the discussion shifted from technology to governmental implications.

      Marco's primary argument is that governments must start seriously contemplating how society will cope with significant labor disruption. This consideration should happen before crises emerge, not after public outcry has escalated to the point where, as he put it, people are ready to “storm data centers.” The time to act is now.

      He believes that some form of universal income will ultimately have to be included in the solution. While this may seem radical in the United States, it appears less so in much of Europe, where there exists a stronger tradition of social support and a greater acceptance of the idea that society holds a responsibility to care for its citizens.

      A key division in the