McKinsey Report: 12 Million White-Collar Jobs Have Been Substantively Replaced by AI by 2029

McKinsey Global Institute released a report titled "The Employment Landscape in the Age of AI: A 2029 Retrospective" on May 30, 2029. The report shows that as of the first half of 2029, approximately 12 million white-collar jobs globally have been substantively replaced by AI — meaning over 50% of the original job content is now performed by AI.

The three most affected industries are accounting and auditing (28% job reduction), legal services (24% reduction), and customer service (35% reduction). The report also notes that AI has created approximately 4.8 million new jobs, primarily in AI training, AI auditing, and human-AI collaboration design.

The report specifically mentions that of the 12 million displaced, approximately 40% successfully transitioned through retraining, 25% moved to new AI-collaborative roles, but about 35% face long-term unemployment or significant salary reduction risks. McKinsey urges governments to incorporate "AI transition support" into social safety nets, providing affected workers at least 12 months of income protection and free retraining.