Snowflake Reveals AI's Double Impact on Tech Employment

The Paradox of AI-Related Employment

A recent survey conducted by Snowflake sheds light on the evolution of tech jobs in the age of artificial intelligence (AI). This study, which surveyed 2,050 executives worldwide, reveals a complex dynamic where AI is causing both job losses and gains in key sectors such as information technology (IT), software development, and cybersecurity.

Reductions and Increases in Tech Jobs

The survey results show that 40% of executives report job reductions in IT operations due to automation. However, an even higher percentage, 56%, indicates an increase in hiring in these same areas. This paradoxical trend is also seen in software development, where 26% of companies have reduced their workforce, while 38% have increased their hiring. For data analysts, the situation is balanced with 37% reporting reductions and the same percentage reporting increases. In cybersecurity, 25% of roles have been reduced, while 46% have seen an increase.

State of Jobs Outside IT

In sectors outside of IT, the situation is simpler but no less concerning. Customer service and support staff are experiencing significant reductions, with 37% of organizations cutting their workforce, compared to only 15% increasing their hiring. In manufacturing and supply chain operations, 6% of companies have reduced their staff, while 13% have hired. The marketing sector is not spared, with 16% reductions against 12% increases.

Restructuring Work

Baris Gultekin, Vice President of AI at Snowflake, explains that this situation reflects a restructuring of work rather than a simple expansion or contraction of the workforce. AI is taking over repetitive and manual tasks, thereby creating new responsibilities around AI integration, governance, data engineering, security, and performance oversight. Companies are not just reducing or adding jobs; they are redefining roles to support new AI-related workflows.

Evolution, Not Elimination

When asked whether generative AI has led to job creation or loss, 42% of executives responded that jobs have been created, while 11% indicated losses. About 35% reported that jobs have both been created and lost due to AI. The remaining 13% stated that AI has not affected their employment. Overall, 77% reported some job creation, with or without concurrent losses. According to Gultekin, this indicates that the evolution of roles is more significant than their elimination.

Increased Demand in Higher-Skill Areas

The survey data suggest that the current narrative around AI usurping tech jobs is more complex than it appears. Historically, major technological shifts alter the composition of work more than they reduce total employment. A similar pattern is emerging with generative and agentic AI. Some task-based roles are being automated, while demand is increasing in higher-skill areas such as AI operations, cybersecurity, data engineering, and governance. Organizations that are more advanced in AI adoption are more likely to report a net positive impact on employment. Gultekin emphasizes that this trend reflects a reallocation of talent towards more strategic, technical, and AI-enabled roles.

Concerns Related to Agentic AI

The Snowflake survey also explored the main business and technical concerns associated with the development and deployment of agentic AI. Major concerns include interoperability issues (42%), legacy system incompatibility (39%), providing real-time data processing for agent decision-making (42%), job displacement (29%), maintaining human oversight to prevent undesirable actions by agents (29%), and concerns regarding data storage and usage (29%).