How ‘AI Replacement Dysfunction’ Is Stressing Out The Workforce

While there have only been a few job cuts as a result of AI taking over, it doesn't stop the workforce from feeling a way, causing AIRD to develop.

Researchers have penned a new term for employees anxious about losing their jobs to AI: “AI replacement dysfunction,” Gizmodo reports.

The term “AIRD” is defined as a “new, proposed clinical construct describing the psychological and existential distress that could be experienced by individuals facing the threat or reality of job displacement due to artificial intelligence.”

A new poll from Reuters/Ipsos found 71% of employees admit to being concerned about AI putting “too many people out of work permanently.” Data from Pew Research revealed more than half of Americans are worried about how AI will impact the workplace and their jobs, with lower- and middle-class workers strongly believing AI will make things worse for job prospects in the future.

While there have been only a few job cuts as a result of artificial intelligence taking over, it doesn’t stop the workforce from feeling a way, which has led to the development of AIRD. And some mental health effects are attributed to it, with symptoms including anxiety, insomnia, and depression. It also leads to identity confusion, causing reflection on “deeper fears about relevance, purpose, and future employability.”

Experts like clinical associate professor of psychiatry at the University of Florida, Joseph Thornton, label AI displacement as “an invisible disaster,” which commonly affects mental health. “As with other disasters that affect mental health, effective responses must extend beyond the clinician’s office to include community support and collaborative partnerships that foster recovery,” Thornton said, according to Futurism.

There is a narrative and some studies that have revealed AI could eliminate a number of entry-level white-collar jobs, adding to the heightened fear. In addition to early-career workers already having a hard time finding jobs due to the economic downturn, another reason could be that several companies are ditching human labor in favor of software.

And it doesn’t help that some of the industry-leading developers, like Microsoft’s AI CEO, Mustafa Suleyman, continue to support. Suleyman once said that AI could potentially automate “most, if not all,” white-collar tasks within a short timespan—like a year and a half.

But it seems to be happening already. Co-lead author of an article touching on the dangers of AIRD and the term’s creator, Stephanie McNamara, said the term came about due to the alarming rise in AI-induced layoffs in 2025. “It made me think about the mental health impacts it is going to have on society,” the psychology student at the University of Florida said. One report from Challenger, Gray & Christmas cited more than 54,000 layoffs in 2025 due to AI.

And layoffs have carried into 2026.

CoStar Group, a real estate analytics and marketing company headquartered in Arlington, Virginia, announced a workforce reduction and the integration of AI technologies. The move, described as a way to “accelerate revenue growth and operational efficiencies,” will affect 120 roles.