A new report from McKinsey Global Institute tackles one of the most pressing fears of the modern economy: the sweeping job displacement threatened by artificial intelligence. While McKinsey’s research indicates that current technologies could, in theory, automate about 57% of U.S. work hours, the consulting firm concludes that this high figure measures technical potential in tasks, not the inevitable loss of jobs.
Instead of mass replacement, the research by Lareina Yee, Anu Madgavkar, Sven Smit, Alexis Krivkovich, Michael Chui, Maria Jesus Ramirez and Diego Castresana argues that the future of work will be defined by a partnership between people, agents, and robots—all powered by AI. Their report, “Agents, robots, and us: Skill partnerships in the age of AI,” emphasizes that capturing AI’s massive potential economic value—about $2.9 trillion in the U.S. by 2030—depends entirely on human guidance and organizational redesign.
The Durability of Human Skills
The primary reason AI will not result in half the workforce being immediately sidelined is the enduring relevance of human skills. While they will be applied differently, McKinsey’s analysis shows a significant overlap in required capabilities: more than 70% of the skills sought by employers today are used in both automatable and non-automatable work. This suggests that as adoption advances, most skills will remain relevant, but how and where they are used will evolve.
For example, highly specialized and automatable cognitive skills, such as routine accounting processes and specific programming languages, could face the greatest disruption. Yet, even as AI takes over tasks like preparing documents and basic research, workers will still be required to apply their existing skills in new contexts, focusing instead on framing questions and interpreting results.
Crucially, skills rooted in social and emotional intelligence—such as interpersonal conflict resolution, design thinking, and negotiation and coaching—will remain uniquely human, demanding empathy, creativity, and contextual understanding that are challenging for machines to replicate. Furthermore, skills related to assisting and caring are likely to change the least.
Redesigning Work, Not Just Automating Tasks
For organizations to successfully leverage AI, the shift must go beyond automating discrete tasks within legacy structures. The report stresses that realizing the projected economic gains requires redesigning entire workflows so that people, agents, and robots can work together effectively, revising processes, roles, culture, and metrics.
Even in roles with high technical automation potential, humans will remain vital to make them work effectively and do what machines cannot. People provide essential oversight, quality control, and the indispensable human presence that customers, students, and patients often prefer.
This transformation is already driving massive changes in demand for new capabilities. Demand for AI fluency—the ability to use and manage AI tools—has grown sevenfold in two years, making it the fastest-growing skill in U.S. job postings. This skill, which focuses on collaborating with and guiding AI systems, demonstrates that the economy is adjusting rapidly toward new forms of collaboration.
Ultimately, while some individual activities could theoretically be automated, the outcome for employment relies on whether organizations and institutions prepare people for the future. If history is a guide, employment is likely to evolve rather than contract.
The AI era is not about replacing the human workforce entirely, but rather shifting the focus of human intelligence from execution to orchestration and judgment. Just as the invention of the calculator didn’t eliminate mathematicians but freed them to solve higher-level problems, AI automates the mundane, allowing human workers to concentrate on complexity, decision-making, and care. Ultimately, the work of the future will be a partnership between human and machine.
“Integrating AI will not be a simple technology rollout but a reimagining of work itself,” the report argued. “Redesigning processes, roles, skills, culture, and metrics so people, agents, and robots create more value together.”
For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.