CHARLOTTE, N.C. — Recent years have given rise to changes in Charlotte's business landscape, as office vacancies continue to increase. While employers look for different types of office space, employees are growing more concerned about the threat of AI technology.
AI and the Charlotte workforce
The rise of artificial intelligence has many people concerned that technology could replace their jobs.
A recent report by the Chamber of Commerce outlines the cities where employment is the most threatened by AI. Charlotte made the top 25, possibly losing 165,000 jobs to AI by 2027.
From more efficiency to industries becoming less human, there's no question that AI is reshaping jobs. But it's also replacing them.
According to the Chamber of Commerce, over 1.2 million people are employed in the Queen City. More than 165,000 jobs, or 13% of the city's workforce, are at risk due to advancing technology.
As AI continues to advance, experts say more disruption will occur, especially in certain industries.
“When we’re talking about the types of occupations specifically in Charlotte, that’s retail sales, customer service reps, bookkeeping, accounting, auditing clerks," researcher for the Chamber of Commerce Collin Czarnecki said.
The future may be uncertain as the workforce heads into unchartered territory, but there are ways people can protect and prepare themselves for what may come.
“Take advantage of training opportunities, build your professional network, keep in touch with formerly colleges, and be adaptable, soak up everything you can about AI, learn about the tech incorporate it into your job, and also be willing to make a career pivot if you need to," Czarnecki said.
Charlotte office vacancies
Meanwhile, empty office space in Charlotte is at a high.
A recent report shows which cities have the highest number of office vacancies and Charlotte made the top 10, for the largest vacancy increases since 2019.
According to CoStar, a commercial real estate group, Charlotte, where population and job growth have been among the strongest in the country, has seen office vacancy rates rise faster than in New York City.
“Charlotte was kind of a victim of its own success heading into the pandemic," Chuck McShane, CoStar's Charlotte-based director of market analytics, said.
The report shows the office vacancy rate in Charlotte is 12.6%, which is a 5.5% increase since 2019.
McShane said Charlotte's new construction explains the vacancy spike. While demand has declined, supply remains high.
“We were such a tight office market, we had so much demand for office space, we broke ground on so much of in 2019 and 2020 and it delivered into the pandemic as the demand picture changed entirely," McShane said.
“Companies are looking for smaller spaces, higher-end spaces," McShane said.
Right now, there are questions about what will happen to these empty spaces. Developers across the U.S. are converting some offices into apartments. With this comes challenges, as conversations can be complicated, but there's hope.
“I do think there will be a segment of these buildings that are in the best locations that can be renovated to standards that can attract new tenants, particularly as new office space gets filled up," McShane said.
Contact Lexi Wilson at lwilson@wcnc.com and follow her on Facebook, X and Instagram.