TEANECK, N.J., Jan. 15, 2026 /PRNewswire/ — Cognizant’s latest report, “New Work, New World 2026,” reveals that artificial intelligence (AI) could potentially unlock $4.5 trillion in labor productivity across the U.S. economy. The study highlights an accelerated impact of AI on the workforce, with an astonishing 93% of jobs today likely affected by AI technologies. However, it cautions that the integration of human skills and judgment is essential for organizations to fully harness AI’s capabilities.
The report builds on findings from a previous study released in 2024, indicating that AI is progressing more rapidly than anticipated. Cognizant’s analysis evaluated 18,000 tasks and 1,000 jobs from the O*NET labor database, focusing on the degree to which AI could assist or automate various roles. The study identifies a significant increase in “exposure scores,” reflecting the proportion of tasks that can be automated, noting an average score of 39% today—30% higher than the original estimate for 2032.
“We’re seeing significant capital flow into AI, and the rapid adoption of these technologies is reshaping the workplace,” said Ravi Kumar S, CEO of Cognizant. “Our research shows that enterprises could unleash $4.5 trillion in labor productivity today. However, turning that investment into meaningful results takes more than raw technology power. Businesses must also integrate contextual intelligence, build flexible systems that can absorb new AI capabilities, and prioritize human learning and development alongside technological advancements.”
Kumar emphasized that effective workforce skilling is the key to translating today’s AI investments into tangible results for the future. “AI’s promise is realized when we empower our workforce with digital fluency, adaptability, and continuous learning, while ensuring AI solutions are deeply contextualized to unique business challenges,” he added. The report suggests that new roles will emerge as businesses adapt to leverage AI effectively.
The findings also indicate that, while AI is evolving quickly, it does not render human knowledge obsolete. For example, the study revealed that many management and operational tasks still require significant human input; AI cannot automate over 40% of functions in these areas. This underscores the necessity of human expertise and collaboration in achieving substantial gains from AI.
Notably, the report documents a shift in the nature of work affected by AI. Whereas earlier forecasts suggested that knowledge-based roles in fields like computer science would be most vulnerable, current projections show that manual labor jobs are now experiencing significant exposure to AI. For instance, exposure scores for transportation roles surged from 6% to 25%, while construction roles increased from 4% to 12%. Conversely, sectors such as legal and education have seen substantial increases in automation potential, with exposure scores rising significantly.
While the potential for AI to perform tasks previously considered non-automatable has dramatically decreased, from an average of 57% in 2023 to 32% today, the report advises businesses to develop tailored strategies to realize the full benefits of AI. “Realizing full AI value from labor is not a one-size-fits-all strategy,” the report states, urging companies to treat workforce learning as a rapid response mechanism to keep pace with technological advancements.
Cognizant’s report serves as a reminder that while AI offers unprecedented opportunities for enhancing productivity, the complex interplay between technology and human skills will determine its success in the workplace. As organizations navigate this evolving landscape, the focus must remain on integrating human creativity and critical thinking alongside AI capabilities, ensuring that technology serves as a complement rather than a replacement.
For further insights, the full report is available on Cognizant’s website.
About Cognizant:
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes, and transform experiences to stay ahead in a fast-changing world. Together, we’re improving everyday life. Learn more at www.cognizant.com or @cognizant.
Cognizant is committed to empowering the next generation of talent through its Synapse program, aiming to reach two million individuals globally by 2030 and preparing the workforce for future jobs. To learn more about the Synapse skilling initiative, visit the website.
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