Here’s the brutal math of the labor transition facing the American workforce: It takes 30 days for a 25-year-old AI-native college graduate to become productive. Meanwhile, I have employees with 20 years of experience who struggle to shift from their comfort zone to master the new tools.
The most frustrating part is that in each business we own and operate at Exela, we see both sides of this transformation. There’s the exciting side where the company can become more profitable, and there’s the human side where we are working with people whose jobs are at risk. How do you tell someone with cancer they are about to lose their livelihood?
Unfortunately, we simply cannot afford to retrain people at scale. The companies that don’t become disruptors in this space will get disrupted themselves.
In the debate about the impact of automation and agentic AI on the American workforce, there are two camps: those sounding the alarm on massive job displacement and those who want to know which specific roles will be eliminated. The difference is stark. Vague warnings will likely only lead to panic and bad policy responses. But, as a country, if we know which jobs are at risk, we can prepare, retrain, and adapt.
When Chinese AI startup DeepSeek launched its R1 model requiring far less computational power than their American peers in January, it was only exposing the limitations Silicon Valley had already begun acknowledging. As millionaire investor Marc Andreessen noted, “we’re increasing GPUs at the same rate, but we’re not getting the intelligence improvements at all out of it.” That’s even before factoring in the supply chain challenge of providing enough chips to keep delivering the current rate of unsustainable growth.
As digital transformation becomes even more multidimensional—with hyperautomation coming on stream and AI agents reshaping business operations—the nature of outsourcing is changing rapidly, too.