Just a few years ago, landing a tech job felt almost inevitable for those with the right skills. Before the pandemic, startups boomed, Silicon Valley was awash in venture capital, and companies eagerly hired junior developers, designers and data analysts, even those fresh out of bootcamps.
During the early pandemic, tech demand soared further as businesses rushed to digitize, opening even more doors for remote tech workers across the country. But that momentum didn’t last. As the dust settled, mass layoffs swept through the industry, and a new force began reshaping the landscape: artificial intelligence.
Tools like ChatGPT and automated code generators started handling tasks once assigned to entry-level workers. Now, job seekers face a market defined by tighter hiring, global competition and a growing reliance on automation. What was once a high-wage career path has become risky and uncertain.
Artificial intelligence in the workplace isn’t new. Factories have relied on automation for decades, but the rise of generative AI marks a turning point in how technology interacts with white-collar work. The release of tools like ChatGPT in late 2022 pushed AI into the mainstream, making it possible to instantly generate code, marketing copy, legal memos and even visual designs. What was once considered uniquely human work is now subject to rapid automation.
According to a 2023 McKinsey report, AI could automate tasks that make up 60–70% of time spent across jobs, especially in fields like customer service, legal work, finance and administration. Meanwhile, sectors like healthcare, STEM and creative tech roles are expected to grow, fueled by new AI-driven innovations.
The World Economic Forum projects 83 million jobs could be lost globally by 2027 due to automation, but also estimates 69 million new roles will emerge, many requiring new skills. Pew Research found that while most Americans expect AI to significantly impact the workforce, few feel personally at risk, highlighting a potential disconnect between perception and reality.
Despite alarm over job displacement, some economists argue that AI will augment rather than eliminate many roles, particularly those involving complex judgment or human interaction. But one thing is clear: the divide between routine, automatable work and roles requiring adaptability is widening, leaving workers and employers scrambling to keep up.
Narrow Pathways
Lisa Countryman-Quiroz, CEO of the San Francisco-based nonprofit Jewish Vocational Service, has spent years helping people without four-year degrees access stable, middle-class careers. Her organization provides job training in sectors like healthcare, skilled trades and technology, with a focus on economic mobility for underrepresented workers. But as AI transforms the labor market, she says even previously reliable pathways into tech are narrowing.
Over the past two years, Jewish Vocational Service has phased out several of its entry-level tech training programs. Roles the nonprofit once emphasized—such as frontline IT support or tech sales—are now increasingly automated.
“The positions we were training for are gone,” Countryman-Quiroz says. “There’s been a real shift in what’s possible.”
She notes that post-pandemic optimism around tech hiring has given way to layoffs, hiring freezes and a growing preference for AI-driven tools. As businesses look to streamline operations, automation is becoming a priority, not just in engineering roles, but across support and administrative functions too.
This shift is especially tough on young workers. Recent college grads already face higher-than-average unemployment, and now they’re competing with laid-off tech employees and federal workers re-entering the labor market. Countryman-Quiroz worries that workers without degrees or formal experience will find it harder to access family-sustaining jobs.
Still, she sees potential in this moment, if business and political leaders act quickly.
“There’s a bright spot here,” she says. “New industries and companies will emerge, but we need to invest in training now to make sure people aren’t left behind as the market shifts.”
Upskilled Labor
Prathma Rastogi, a San Jose–based full-stack software engineer, has been watching the slow creep of automation in her field for years, but says the pace accelerated dramatically in the last 12 months. Tools like GitHub Copilot and ChatGPT began gaining serious traction in engineering teams, assisting with tasks like writing boilerplate code, generating unit tests and even brainstorming fixes during debugging sessions.
“It’s not just hype anymore. AI is actually showing up in how teams work,” Rastogi says.
She agrees with the assessment that entry-level tech roles are the most vulnerable, particularly junior developer positions, saying AI can already handle basic coding tasks and that what’s left to humans is solution design and higher-level thinking.
This shift has changed the expectations of engineers at every level. Rastogi says developers now have to embrace continuous learning, especially in AI-related tools and methodologies. “If you’re not staying curious and learning about AI, you’re falling behind.”
Where a project once required a team of ten, she says automation means it can now be completed with two. That efficiency is appealing to companies, but it also means fewer job openings and greater pressure on existing workers to upskill or shift focus. Rastogi believes the future of work will depend on people strengthening the areas AI can’t replicate: product strategy, ethical decision-making, systems thinking and human-centered design.
She urges employers and policymakers to recognize the importance of investing in the current workforce.
“Companies should prioritize reskilling their people instead of just hiring for AI roles,” she says. “And the government can support that with grants or incentives to help workers stay empowered and not replaced as these technologies evolve.”
Marco Sciorelli, an engineering professional based in San Jose, views artificial intelligence as a natural evolution in the tech industry: one that’s rapidly shifting both how people work and where new opportunities are emerging. While many focus on white-collar job loss, he emphasizes that AI is also fueling demand in less obvious sectors, particularly energy and infrastructure. As more data centers are built to support AI operations, roles for electricians, mechanical contractors and utility technicians are on the rise.
“Someone has to build and power these systems,” he says. “That’s creating work, but also pressure on the grid.”
At the same time, Sciorelli has seen firsthand how companies are using AI to cut labor costs, especially in the wake of COVID-19. In his own workplace, tech support was one of the first departments to be automated. With internal databases already compiled, bots quickly replaced human staff for most routine inquiries.
He also sees generative AI outperforming humans in some areas of software development, particularly in writing code.
“AI doesn’t forget or develop bad code-writing habits,” he says.
While he admits that even he’s questioned his job security, Sciorelli believes workers should focus on adapting. The future, he says, belongs to those who can complement automation with strategic thinking, creativity and skills that can’t be easily replicated by machines.
This mindset is reflected in local initiatives. In San Jose, city government staff recently completed a 10-week AI Upskilling Program, in partnership with San Jose State University, that trains public employees to build AI assistants and work tools. The initiative reportedly saved the city tens of thousands of staff hours and cut consulting costs by around $50,000 per department. This reflects a broader push toward collaborating with humans and AI.
The Human Touch
Across Silicon Valley, educational institutions are launching focused credential programs in AI-related roles. The Silicon Valley Leadership Group, in partnership with Foothill–De Anza Community College District, has rolled out an AI Fellowship Program to develop curricula for emerging careers like prompt engineering, AI ethics and systems integration. UC Santa Cruz Extension also offers U.C.–approved certificate tracks in AI application development and prompt engineering, accessible to current professionals and non‑technical learners alike.
These paths mirror national trends: roles that optimize how AI tools respond are increasingly in demand, sometimes commanding top-tier salaries without requiring traditional tech degrees, according to political reporter Nik Popli. Local experts emphasize that people who can’t be easily automated will hold the most resilient roles moving forward. As tech professionals often put it: adaptability and AI literacy are the keys to remaining competitive and contributing meaningfully in this evolving landscape.
As artificial intelligence continues to evolve, its impact on the labor market is no longer theoretical—it’s structural. From San Jose to the broader Bay Area, both displacement and opportunity are unfolding simultaneously. While automation is reducing demand for certain roles, especially at the entry level, it is also accelerating the creation of new positions and industries that require different skills.
Whether AI ultimately deepens inequality or drives broad-based economic growth depends on how stakeholders respond today. The future of work is being shaped now, and readiness, not reaction, will determine who benefits.
