Salman Khan Calls for Urgent Reskilling as AI Threatens Millions of Jobs

NRI Pulse Staff Report

Salman Khan, the founder and CEO of Khan Academy, and a prominent voice on the future of artificial intelligence, is warning that the economic and social impact of AI may arrive sooner and have a more significant impact than many people expect.

In a recent interview with Fortune, Khan cautioned that even modest job losses in white-collar sectors could trigger widespread economic and psychological shock, affecting not only the economy but also the identity of millions of professionals.

“If white-collar work were to shrink by just 10%,” Khan told Fortune, “it would feel like a depression, causing significant disruption to the job market and the livelihoods of many individuals.”

Khan’s concerns extend beyond unemployment statistics, as he believes the disruption could also shake the sense of self and identity of professionals who have been making upper-middle-class salaries for the last 20 years and have tied their identity to their careers.

“Their sense of self is closely tied to their job, and now, all of a sudden, they may face a mass shift in the job market, which could lead to significant economic and psychological challenges,” Khan said.

While economists remain divided on the dramatic impact of AI on employment, emerging research suggests that substantial change may be on the horizon. A study by MIT projected that AI could replace nearly 12% of the U.S. workforce by 2025, almost triple the current rate of displacement.

Khan emphasized that the impact of AI will not be limited to traditional white-collar professions, as automation is already reshaping the gig economy, with driverless vehicles and other technologies expanding across parts of the United States.

He also pointed to conversations with industry insiders as evidence that corporate leaders are preparing for significant workforce reductions, with some suggesting that the same work could be done with a quarter of the team.

“People behind closed doors are talking about pretty bold things these days, and I’ve heard people say that they could do the same work with a much smaller team, which could lead to significant job losses,” Khan said.

Although the broader economy has not yet shown signs of widespread job disruption, with recent federal data showing unemployment falling to 4.3%, AI-related layoffs are already emerging, with roughly 55,000 job cuts linked to AI adoption last year.

For Khan, these developments are early warning signals rather than isolated events, and he is advocating for a sweeping national reskilling initiative to prepare for large-scale workforce disruption.

In a recent New York Times op-ed, he proposed that major corporations dedicate 1% of personnel costs or profits to fund a national training collective designed to help displaced workers transition into new careers.

Current corporate training programs, he argues, are too narrow and job-specific to meet the scale of the coming shift, and a more comprehensive approach is needed to help workers adapt to the changing job market.“If we don’t figure out how to help displaced workers transition into new careers, we’re going to have a huge problem on our hands, and I don’t see any other solution,” Khan said.

Khan has long argued that artificial intelligence represents a transformational force comparable to the printing press or the internet, but unfolding much more rapidly, with the potential to redefine how people work, learn, and understand their place in society.

His warning is not purely economic, as the coming shift could have a profound impact on the social fabric of society, and preparation must begin now to mitigate the effects of AI on the workforce.

Without proactive planning, Khan believes the transition could feel sudden and deeply disruptive for workers across the economy, leading to significant economic and social challenges.

Cover photo credit: TED.