AI & the Workforce: Adoption Levels are Striking, But Job Fears Grow

According to a recent KPMG survey, adoption of AI tools is becoming ubiquitous in US businesses, and employees are leading the charge.  At the same time, however, anxiety about job replacement appears to be growing.  Here are some of the survey’s key findings:

– Nearly 9 in 10 employees use AI tools on a weekly basis, and half use them on a daily basis – a nearly 20 point increase over last year. Everyday uses include data analysis, administrative tasks, research, technical troubleshooting, customer service, idea generation and more.

– 76% of employees feel prepared to use AI in their roles and 84% want more training. Managers use AI at a higher rate than other employees and 76% of managers say they look for AI skills when hiring – which the survey says indicates that AI skills are becoming “table stakes” for advancement.

– While employees are enthusiastic adopters of AI, 52% of them worry that AI could eventually displace them, nearly double the percentage that felt that way last year.

KPMG’s findings about the fear of job losses contrast with a recent survey of insurance underwriters and actuaries, which found that fears among this cohort about AI-related job replacement have declined significantly over the past year.  Here’s an excerpt from a Reinsurance News article:

In 2025, there has been a marked fall in the fear of becoming obsolete or replaced by artificial intelligence (AI), with less than half of underwriters (48%) and actuaries (49%) now fearing replacement by AI, down from 74% and 80% respectively in 2024, according to a recent report by hyperexponential (hx).

In collaboration with independent research firm Coleman Parkes, hx surveyed 350 underwriters and pricing actuaries working in Specialty and Commercial insurance across the US and UK for its 2025 State of Pricing report.

The drop in replacement fears reflects a growing sense of understanding, ease, and pragmatism around emerging technology and how it is reshaping the roles of insurance professionals. The widespread adoption agenda is further underlined by insurer spending trends: 96% are investing or plan to invest in data and analytics, with 85% prioritising automation over the next five years.

Perhaps the takeaway here is that as employees become more familiar with AI tools, they become more comfortable that while their roles may change, AI is unlikely to replace them.  Whether that perspective expands beyond the insurance industry remains to be seen.  I guess we’ll all find out if that perspective is correct over the course of the next few years.