1 in 8 U.S. Companies Will Respond to Tariffs by Replacing Workers With AI

As tariffs drive up costs, many U.S. companies plan to raise prices, freeze hiring, or lay off employees in 2025. According to AI Resume Builder’s April 2025 survey of 750 import-reliant companies, a number are turning to AI to manage expenses and replace workers.

Key findings:

• 1 in 8 companies will replace employees with AI in 2025
• Nearly 1 in 3 companies using AI to replace staff anticipate cutting more than 25% of their workforce
• Customer service, admin, and marketing roles most at risk for AI-driven workforce reductions
• 3 in 10 companies are accelerating their AI investment

1 in 8 Companies Will Replace Workforce With AI in 2025

Roughly 90% of companies expect their costs to increase due to Trump’s tariffs, with 40% anticipating significant increases and 49% expecting slight increases. In response, 77% plan to raise prices, 49% will freeze hiring, and 31% expect to lay off workers. About one in three companies also plan to use AI to boost productivity.

Among companies planning layoffs, 41% say they will replace workers with AI in 2025, representing about one in eight companies overall.

3 in 10 companies using AI to replace workers will cut more than 25% of their staff

Among companies using AI to replace staff, 63% expect to replace between 5% and 25% of their workforce. Nearly one in three will replace more than 25%, with 24% anticipating cuts of 26% to 50%, and 3% expecting to replace over half of their workforce. Just 10% say AI will replace less than 5% of their staff.

“As AI adoption increases, workers should consider upskilling and learning how to use the tool to become more efficient and reduce their chances of being laid off,” says Soozy Miller, Head of Career Advising at AI Resume Builder. “Employees should also focus on creating results within their organization and adding value. For example, showing initiative on new projects and adapting to changing circumstances can show leadership potential.”

Customer service roles most at risk to AI

Customer service is the most vulnerable department to AI-driven workforce reductions, with 75% of companies identifying it as a likely target. Other roles at high risk include administrative support (55%), marketing and content creation (54%), logistics and supply chain (48%), and finance and accounting (43%).

Additional departments likely to be impacted include human resources (42%), engineering or information technology (IT) (41%), product development (37%), and sales (33%).

3 in 10 Companies Are Accelerating Their AI Investment

Nearly three in 10 companies say they are accelerating their AI investment in 2025. Most companies (62%) plan to maintain their current level of investment, while just 10% report scaling back.

Cutting labor costs is a top reason companies are increasing their AI investment

Among companies boosting AI investment, 67% are doing so to improve operational efficiency, 52% to enhance data capabilities, and 51% to reduce labor costs. Nearly half are motivated by staying competitive (49%) and improving customer experience (47%). Additional drivers include rising costs from tariffs (33%), economic instability (31%), reducing reliance on offshore labor (24%), and political uncertainty (15%).

“Workers should be aware that companies will accelerate AI adoption regardless of tariffs. Staying competitive globally means continuously advancing technology. While media headlines often predict dramatic and sweeping layoffs, only some sectors like customer service and IT are likely to see major disruption for the time being. Other roles like sales still rely heavily on human connection.” says Miller.

Methodology

This survey consisted of 750 U.S. business leaders and was conducted from April 4-8, 2025. It was commissioned by AI Resume Builder. Appropriate respondents were identified through screening and demographic questions. To qualify, participants had to confirm that their company imports goods and that they are aware of the tariff plan announced by President Trump on April 2, 2025.

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