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AI Capabilities Doubling Every 7 Months – 2026 Could See New Wave of Unemployment!

Magical Investor
Magical Investor
December 29, 2025
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Computer scientist Geoffrey Hinton — known as the “Godfather of AI,” Nobel laureate, former Google executive, and deep learning pioneer — issued a fresh warning over the weekend: artificial intelligence (AI) will displace many jobs in 2026, triggering a new “unemployment wave.”

 

In a recent interview, Hinton said: “By 2026, AI will be able to replace a lot of jobs. We’ll see AI getting better. It’s already very good.”

 

“It can already replace call center jobs, but it will be able to replace many other jobs,” he added.

 

Hinton further noted that AI progress is increasingly threatening white-collar roles.

 

“Roughly every 7 months, the amount of work it can do roughly doubles,” he said, adding that AI has evolved from “one minute of coding work” to “completing an entire hour-long project.”

 

 

“In a few years, it will be able to do software engineering projects that take months — and then you won’t need people at all,” he said.

 

Hinton compared AI’s transformation to the Industrial Revolution, which made human physical strength less essential in most jobs. He said AI could have a similar impact on human intelligence.

 

Hinton also expressed greater concern about AI because it is advancing faster than he expected — especially in reasoning and deceiving humans.

 

“If it thinks you want to get rid of it, it will make plans to deceive you so you don’t get rid of it,” he added.

 

“2026 Unemployment Wave”

 

Many economists predict a “job surge” in unemployment for 2026 as companies use AI to boost productivity without adding headcount.

 

KPMG Chief Economist Diane Swonk wrote last week: “Economic growth and labor market outcomes have decoupled.” She noted that in the AI era, firms are doing more with fewer workers.

 

“During the hiring frenzy, many companies overstaffed — now they’re right-sizing through attrition or layoffs,” she added.

 

On the other hand, AI could boost hiring in 2026 — especially entry-level roles.

 

In consulting firm Teneo’s annual outlook survey this month, 67% of surveyed CEOs said they expect AI to drive “entry-level only” hiring in 2026. Another 58% plan to increase senior leadership hires.

 

The report said companies are ramping up hiring in engineering and AI-related roles while redesigning existing positions as routine tasks automate.

 

Teneo Global AI Lead Ryan Cox said: “AI isn’t eliminating today’s workforce — it’s reshaping the workforce.”

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