AI Can Unlock $4.5 Trillion in U.S. Labor Productivity Today, Reveals Cognizant's Latest "New Work, New World 2026" Report
Findings also point to the limits of AI's impact, with skilling and human judgment playing a critical role in how organizations capture AI's full value
"We're seeing significant capital flow into AI, and the rapid adoption of these technologies is reshaping the workplace," says Ravi Kumar S, CEO of
Kumar continues: "Human skilling becomes the bridge through which today's AI spending translates into tomorrow's tangible results. AI's promise is realized when we empower our workforce with digital fluency, adaptability and continuous learning, while ensuring AI solutions are deeply contextualized to unique business challenges. As a result, new job roles will emerge to harness this opportunity."
Other key highlights from the report's findings include:
- AI is changing the workforce far more quickly than projected: The report finds the average exposure score across jobs is 39% today, which is 30% higher than what the original forecast was for 2032. This means more tasks can be assisted or automated by AI, sooner than originally predicted. These exposure scores are also now increasing by 9% annually, compared with 2% in the original research. Some notable changes in exposure scores across jobs include legal (from 9% to 63%), education (from 11% to 49%), healthcare practitioners (from 10% to 39%) and C-suite roles, including CEO (from 25% to 60%).
- Knowledge work is not disappearing, nor is manual work completely insulated: The impact of AI is evolving across sectors. Roles in computer and mathematics, once seen as highly exposed to AI, no longer top the report's exposure scores – indicating rapid advancements in AI may have reached their limits in some knowledge work areas. Meanwhile, the research reveals AI could significantly impact manual labor jobs at a faster rate than previously understood. For example, the exposure score for transportation rose from 6% to 25%, and in construction it rose from 4% to 12%.
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All told, AI can perform
$4 .5T in labor productivity today across a wide variety of roles: Through increased automation, AI has the potential to deliver significant value to businesses and the economy today. According to the new report, fewer tasks are left untouched by automation. The percentage of tasks that are non-automatable by AI has plummeted, from 57% on average across tasks in 2023 to 32% today. -
Simultaneously, realizing full AI value from labor is not a one-size-fits-all strategy: The report revealed AI is unable to automate upwards of 40% of management, business/ financial operations and administrative tasks, signaling a critical reality: AI alone can't fully replace humans, and human expertise and collaboration remain indispensable. To tap into the
$4 .5T in labor productivity, businesses must create flexible operating models that can adapt to new and evolving AI capabilities. They must also treat workforce learning as a rapid response mechanism so employees can continuously keep pace with change and effectively leverage AI to deliver meaningful growth.
To read the full report, visit the website here.
About
Forward-Looking Statements
This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the adoption of AI and the labor value of such adoption, the effects and speed of impact of AI on the workforce and the economy and the effectiveness of businesses' efforts to capture the full potential of AI through skilling and human involvement. These statements are neither promises nor guarantees but are the findings of the studies discussed above and remain subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause outcomes to differ materially from those expressed or implied include general economic conditions, the impact of technological development and competition, the competitive and rapidly changing nature of the markets we compete in, the competitive marketplace for talent and its impact on employee recruitment and retention, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
For more information, contact:
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Email Vipin.nair@cognizant.com |
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