Having worked in the artificial intelligence space prior to my election to this House, I have seen the amazing pros but also the cons that come with such technology, particularly as agentic technology develops. Basic administrative tasks in the workplace are being taken away from individuals, allowing them to do more strategic and focused work. That should be welcomed. On the other hand, there are roles that are being completely reshaped, and the entire workplace is being completely reshaped as well. Up to 40% of tasks are at risk of automation in the next five years. That is not all negative. As I said, if we can allow people the flexibility to focus on more strategic work, that type of automation is to be welcomed.
It is a difficulty because up to 40,000 jobs could be at risk because of automation. Some piece of automation within a job is to be welcomed because it helps people. However, if it risks taking someone's job or role, that is where there is a challenge. What we have seen internationally is that there has been a 15% to 40% reduction in customer service and compliance roles, and also in the financial services element.
I have written a national AI workplace replacement programme to essentially direct how we should help workers whose jobs are at risk or are impacted by AI. The Minister, Deputy James Lawless, has done a lot of work on a national skills observatory, and there are other elements, with the Minister of State, Deputy Niamh Smyth, having also taken many actions. However, we need to be proactive before roles are impacted, rather than after. We have seen 700 jobs recently lost at Covalen and another 300 at Meta, so over 1,000 jobs have been lost in recent weeks due to the rise of AI. What I am proposing in this policy is that we focus on small and medium enterprises or large enterprises.
As stated, we have seen job losses at the likes of Covalen and Meta hit the news headlines. However, there are many roles that have been replaced and that have not hit the headlines. It is a case of one job here and five jobs there. We know from the industry that this is happening quietly.
What I am setting out in my policy proposal is that when a company is going to reduce its workforce, it should notify the Government and the national AI workplace relations programme. The State could then assist in retraining thee workers involved to take up new roles within the business. If no roles are available within that particular business, then they should be retrained to take up positions outside of it. What that would do is protect jobs and reskill people within the workplace as opposed to those jobs being lost and the people who hold them having to go on social welfare. One example could be somebody working in an administrative or secretarial role who would move into overseeing the AI being used to replace their role. Another example could be around data integrity and ensuring that whatever is happening is GDPR compliant. I have already engaged with the unions, employer representatives, the Taoiseach and Minister of State, Deputy Smyth, in respect of this matter. It is important that we set out the foundation for establishing a programme and a pilot scheme. I will explain that latter in a moment.