AI creating more jobs than cutting them, study says
Artificial intelligence is creating more jobs than it is eliminating, even as it reshapes technical roles across industries, according to a new report by Snowflake titled “The ROI of Gen AI and Agents.” The study surveyed 2,050 business and technology leaders across 10 countries who are involved in AI purchasing decisions within their organisations.
The report found that 77% of companies globally reported job creation driven by AI, while 46% reported job losses. Among organisations that experienced both hiring and job cuts, 69% said the overall impact of AI on their workforce has been positive. This suggests that as AI adoption increases, it is contributing to net job growth rather than simply replacing workers.
Technical Roles See the Biggest Changes
The report highlighted that technical roles are experiencing the most significant changes. The highest job growth was seen in IT operations, where 56% of organisations reported increased hiring. This was followed by cybersecurity at 46% and software development at 38%.
However, IT operations also reported the highest job losses at 40%. Customer service and support, as well as data analytics, each saw job cuts reported by 37% of organisations. This indicates that while AI is creating new opportunities, it is also reshaping existing roles and changing skill requirements across industries.
Job losses related to AI are mostly affecting junior and mid-level roles. The report found that entry-level positions were impacted the most at 63%, followed by middle management roles at 46%.
Snowflake’s Chief Data Analytics Officer, Anahita Tafvizi, stated that AI’s impact on jobs will vary depending on how organisations use the technology. Roles that effectively use AI will see increased productivity and influence, while others may struggle to keep up.
She also emphasised that the highest return on investment from AI comes when organisations integrate AI into core business operations rather than treating it as a small experimental project. Companies that invest in strong data infrastructure, governance, and workforce skills are more likely to see long-term benefits from AI adoption.
Job Changes in Australia and New Zealand
The report also highlighted similar trends in Australia and New Zealand. According to Snowflake, 74% of organisations in the region reported AI-driven job creation, while 50% reported role reductions. Overall, job creation is still outpacing job losses in the region.
Among respondents in Australia and New Zealand, 41% said AI created jobs across their organisations, 17% said it eliminated roles, and 33% reported a mix of both outcomes.
Glenn McPherson, Regional Vice President for Australia at Snowflake, said the findings challenge the common belief that AI only replaces jobs. He noted that while job losses can be difficult, the number of jobs created by AI across the region is encouraging and may help reduce fears about AI in the workplace.
He also added that employees are showing strong interest in using AI tools in their daily work and are willing to adopt tools that improve their productivity and job performance.
AI Delivering Strong ROI for Businesses
The report revealed how deeply AI is now integrated into business operations. Nearly 48% of all code written in organisations is now generated by AI, showing how widely the technology is being used in technical workflows.
Globally, 92% of early AI adopters reported positive return on investment (ROI) and plan to allocate around 22% of their technology budgets to AI in the coming year. In Australia and New Zealand, this figure is expected to be slightly higher at 23%.
According to Snowflake and research partner Omdia, organisations are more likely to achieve strong ROI and workforce growth when they build a strong data foundation, maintain data quality, and implement proper governance frameworks. Companies that responsibly integrate AI into their core operations and invest in the right skills will be best positioned to benefit from AI in the long term.
