A new term is changing the way workers view their careers: FOBO, or the Fear of Becoming Obsolete. Unlike traditional job insecurity, FOBO is not about being fired; it’s about becoming irrelevant due to advancements in technology, especially AI.
According to KPMG, 40% of workers now worry about losing their jobs to AI, a number that has nearly doubled in the past year. Sixty-three percent say that AI will make the workplace feel less human, and roles involving AI are changing so fast that the skill demands are shifting 66% faster than a year ago. By 2026, FOBO has become the most defining psychological condition in the American workplace.
AI and Job Loss Predictions
Big names like Dario Amodei, CEO of Anthropic, and Microsoft AI CEO Mustafa Suleyman, have warned that AI could eliminate 50% of entry-level white-collar jobs within five years. Senator Mark Warner has echoed these concerns, stating that AI leaders are alarmed by the fast pace of disruption and that new college graduate unemployment could hit 35% in two years.
These predictions are fueling the fear of becoming obsolete — and they are already starting to come true. However, MIT researchers have come out with a study that wants to slow down the panic. The study doesn’t dismiss the fear but challenges the timeline, arguing that the transition may be less abrupt than many think.
MIT Study: A Slower, Rising Tide
MIT researchers recently published a study showing that AI’s impact on the labor market may look more like a rising tide than a sudden catastrophe. Instead of transforming tasks in a crash course, AI is improving gradually, affecting many tasks simultaneously but in a more controlled manner.
The study, titled “Crashing Waves vs. Rising Tides”, is one of the largest examinations of AI’s task performance to date. Researchers tested more than 40 AI models, including GPT-3.5 Turbo, GPT-5, and others, across 3,000 job tasks from the U.S. Department of Labor’s O*NET classification system. These tasks ranged from legal analysis to food preparation.
The core question the study asked was: Can AI complete these tasks well enough for a manager to accept the output without changes? The answer, based on the data, is already yes for many tasks, with AI completing 50% to 75% of tasks at a minimally acceptable level.
AI’s Progress and Future Predictions
By the third quarter of 2024, AI was already completing 50% of tasks that would typically take humans an entire workday. The rate of improvement is steep: from 2024 to 2025, AI models improved at a rapid pace, cutting failure rates in half every two to three years. By 2029, researchers predict AI could complete 80% to 95% of text-based tasks at a sufficient quality level.
MIT’s research confirms that FOBO is not irrational — it’s just premature. The fear is real, but the timeline to widespread automation may be longer than predicted, giving workers time to adjust.
The Institutional Impact of FOBO
Interestingly, while AI is rapidly advancing, many companies have not yet adopted these tools. According to Goldman Sachs, only 19% of U.S. businesses have adopted AI, and this is expected to rise to just 22.3% in the next six months. Additionally, only about one-third of workers feel they are getting enough AI training or reskilling opportunities.
The lack of AI adoption and training is costing businesses. Companies that have adopted AI report significant productivity gains. According to OpenAI’s enterprise data, workers using AI have recovered 40 to 60 minutes daily, with 75% saying they can now complete tasks they couldn’t do before. These companies are getting ahead, and the gap is growing.
The Challenge for Executives
Corporate leaders are under pressure to adopt AI, but many are still struggling. 83% of executives say they lack the right data infrastructure to fully utilize AI. Joe Depa, the Chief Innovation Officer at EY, notes that while AI technology is ready, companies are still catching up in terms of infrastructure and strategy.
Depa also observed that younger employees are adopting AI tools faster than senior leaders, with some experienced workers resisting the change. Those who resist may find themselves left behind as AI users gain a competitive edge.
The Irony of FOBO
The real problem is that FOBO could accelerate the very thing workers fear: becoming obsolete. Workers who resist using AI tools may find themselves at a disadvantage, with their productivity lagging behind peers who embrace the technology.
The MIT study emphasizes that AI’s gradual improvement gives workers time to adjust. However, this time is not infinite. Workers and companies need to adapt strategically, as AI continues to evolve rapidly.
What’s Missing from the AI Story
MIT’s study is careful not to overstate its findings. While AI is improving, it won’t immediately translate into widespread job displacement. The integration of AI into actual workflows presents significant barriers, including organizational friction and concerns about liability. For high-error-tolerance jobs like law and medicine, AI’s full potential may still be years away.
