Quick Hits in the News: The AI+HI Project, Week 7 of 2025

Each week, as SHRM’s executive in residence for AI+HI, I scour the media landscape to bring you expert summaries of the biggest AI headlines—and what they mean for you and your business.

This week, all the AI action is in Paris at the Artificial Intelligence Action Summit. Attendees include OpenAI CEO Sam Altman and Vice President JD Vance, among other global leaders. Closer to home, after launching its AI Recruiter, LinkedIn is now creating tools for job seekers.

1. LinkedIn Is Testing an AI Tool That Could Transform How People Search for Jobs

What to Know: LinkedIn is piloting a job-hunting AI tool powered by a custom large language model (LLM). Unlike traditional keyword-based searches, this AI-driven system analyzes vast datasets to match job seekers with roles they might not have thought to search for. The tool can interpret complex queries, assess job descriptions, and even suggest skills needed for particular roles. The tool is currently being tested with a small group of users.

Why It Matters: LinkedIn’s AI-powered search could reshape how job seekers and employers connect by surfacing hidden opportunities and optimizing job-market efficiency. However, concerns about algorithmic bias in AI-driven recruitment remain a challenge.

2. Workday Cuts Nearly 2,000 Employees

What to Know: Enterprise HR platform Workday has laid off 1,750 employees, about 8.5% of its workforce. Unlike other major tech firms, Workday had previously avoided large-scale job cuts. CEO Carl Eschenbach stated that the layoffs are part of a strategic shift, with plans to hire AI talent. This follows a broader wave of tech layoffs that has impacted companies including Okta, Cruise, and Amazon.

Why It Matters: Workday’s layoffs reflect ongoing shifts in the enterprise tech sector, as companies adjust to market conditions and prioritize AI investment. The move signals a growing emphasis on AI-driven efficiency while raising concerns about enterprise software and how it relates to job stability in HR.

3. IT Unemployment Rises to 5.7% as AI Hits Tech Jobs

What to Know: Unemployment in the IT sector surged from 3.9% in December to 5.7% in January, marking a sharp increase as AI-driven automation reshapes the tech job market. The number of unemployed IT workers jumped from 98,000 to 152,000, according to a report by Janco Associates based on U.S. Department of Labor data. Companies are cutting routine IT roles, such as reporting and clerical administration, while also reducing programmer and systems designer positions as AI adoption expands.

Why It Matters: AI investment is accelerating, but so far it is leading to cost avoidance—companies automating tasks instead of hiring. The shift signals a broader transformation in white-collar employment, with job losses in tech contrasting against stable or growing demand for in-person skilled labor roles.

4. Reframing Digital Transformation Through the Lens of Generative AI

What to Know: Enterprise adoption of generative AI (GenAI) has skyrocketed, pushing companies beyond experimentation into strategic integration. Businesses are now grappling with AI’s impact on ROI, governance, and scalability. While many early adopters underestimated the risks and costs, leaders are recalibrating their digital transformation strategies to maximize AI’s potential. Key challenges include measuring AI’s value, integrating governance frameworks, and ensuring AI applications deliver tangible business benefits.

Why It Matters: GenAI will be a driver of organizational transformation. Companies that fail to refine their ROI models, streamline deployment, and establish governance risk falling behind.