AI Can Unlock $4.5 Trillion in U.S. Labor Productivity Today, Reveals Cognizant's Latest "New Work, New World 2026" Report

Rhea-AI Summary

Cognizant (NASDAQ:CTSH) released New Work, New World 2026 on Jan 15, 2026, finding AI can unlock $4.5 trillion in U.S. labor productivity today and potentially affect 93% of jobs.

The report, based on a reassessment of 18,000 tasks and 1,000 jobs in O*NET, finds the average exposure score is 39% (30% higher than the original 2032 forecast) and exposure scores are rising 9% annually. Notable role shifts include legal (from 9% to 63%), education (11% to 49%), healthcare practitioners (10% to 39%), CEO (25% to 60%), transportation (6% to 25%) and construction (4% to 12%).

The share of tasks deemed non-automatable fell from 57% in 2023 to 32% today, but the study also notes AI cannot automate upwards of 40% of management, business/financial and administrative tasks, underlining the need for skilling and adaptable operations to capture AI value.

Positive

• $4.5T in U.S. labor productivity potentially unlocked today
• Average exposure score 39% (30% above original 2032 forecast)
• Exposure scores increasing at 9% annually

Negative

• 32% of tasks remain non-automatable today
• AI unable to automate upwards of 40% of management, business/financial and administrative tasks

News Market Reaction

-2.17%

1 alert

-2.17% News Effect

On the day this news was published, CTSH declined 2.17%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

AI labor productivity potential: $4.5 trillion Jobs potentially affected: 93% of jobs Tasks reassessed: 18,000 tasks +5 more

8 metrics

AI labor productivity potential $4.5 trillion Value of U.S. work tasks AI can handle today

Jobs potentially affected 93% of jobs Share of U.S. jobs potentially impacted by AI today

Tasks reassessed 18,000 tasks Number of tasks analyzed in O*NET labor database

Jobs reassessed 1,000 jobs Number of job types analyzed in O*NET labor database

Average exposure score 39% Average AI exposure score across jobs today

Exposure growth rate 9% annually Current annual increase in AI exposure scores

Non-automatable tasks 2023 57% Share of tasks non-automatable by AI in 2023

Non-automatable tasks today 32% Share of tasks non-automatable by AI today

Market Reality Check

Price: $84.19 Vol: Volume 5,270,082 is 16% a...

normal vol

$84.19 Last Close

Volume Volume 5,270,082 is 16% above the 20-day average of 4,524,048, indicating elevated interest ahead of this AI report. normal

Technical Shares at $86.70 are trading above the 200-day MA of $75.02 and sit 4.54% below the 52-week high of $90.82.

Peers on Argus

CTSH is up 2.64% while peers show mixed moves: WIT up 3.77%, BR up 0.14%, FIS, L...

CTSH is up 2.64% while peers show mixed moves: WIT up 3.77%, BR up 0.14%, FIS, LDOS, and CDW down modestly. With no broad, same-direction moves and no peer headlines today, the reaction looks stock-specific rather than a sector-wide AI rerating.

Historical Context

5 past events · Latest: Jan 13 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 13	AI infrastructure report	Neutral	-0.9%	Third-party AI infrastructure report citing Cognizant in partner ecosystem.
Jan 07	Earnings scheduling	Neutral	-0.6%	Announcement of Q4 2025 earnings release date and conference call details.
Jan 02	Acquisition completion	Positive	-2.1%	Closing of 3Cloud acquisition to deepen Azure and data/AI services capabilities.
Dec 24	AI coding blueprint	Positive	+0.3%	Launch of Enterprise Vibe Coding Blueprint to operationalize AI-assisted coding.
Dec 18	Microsoft AI partnership	Positive	+0.2%	Expanded multi-year AI partnership with Microsoft for industry-grade solutions.

Pattern Detected

Recent company news, especially AI- and capability-related, often saw modestly positive or muted 24-hour price reactions, suggesting the stock has absorbed a steady flow of AI initiatives without extreme swings.

Recent Company History

Over the past few months, Cognizant has highlighted multiple strategic developments. These include AI infrastructure-focused research on Jan 13, 2026, scheduling its Q4 2025 earnings call for Feb 4, 2026, and completing the acquisition of 3Cloud on Jan 2, 2026. Earlier, it promoted its Enterprise Vibe Coding Blueprint and expanded a multi-year AI partnership with Microsoft in Dec 2025. Today’s AI labor-productivity report fits into this ongoing narrative of scaling AI capabilities and thought leadership.

Market Pulse Summary

This announcement quantifies AI’s potential to unlock $4.5 trillion in U.S. labor productivity, with...

Analysis

This announcement quantifies AI’s potential to unlock $4.5 trillion in U.S. labor productivity, with 93% of jobs affected and only 32% of tasks now deemed non-automatable. It reinforces Cognizant’s AI narrative built through recent partnerships, labs, and internal transformation initiatives. Investors may watch how these insights translate into concrete client engagements, revenue mix, and adoption of Cognizant’s AI offerings over time, as well as follow-up data validating exposure scores and productivity gains.

Key Terms

o*net

1 terms

o*net technical

"analysis is based on a reassessment of 18,000 tasks and 1,000 jobs in the O*NET labor database"

O*NET is a comprehensive, government-maintained database that describes occupations—what workers do, the skills and education they need, typical tasks, and related pay and work conditions. Think of it as a detailed “profile” or phonebook for jobs that helps analysts and managers understand labor needs and skill gaps. Investors use it to gauge workforce trends, hiring costs, and whether a company or industry is likely to face talent shortages or need costly retraining as technologies and regulations change.

AI-generated analysis. Not financial advice.

Cognizant's study shows AI is accelerating faster than projected, with 93% of jobs potentially affected today

Findings also point to the limits of AI's impact, with skilling and human judgment playing a critical role in how organizations capture AI's full value

TEANECK, N.J., Jan. 15, 2026 /PRNewswire/ -- Cognizant today announced the release of "New Work, New World 2026," providing fresh analysis on how artificial intelligence (AI) will impact work and jobs. Building on the original report's release in 2024, the new research reveals AI is changing the workforce faster than previously reported: it's now capable of handling $4.5 trillion in U.S. work tasks and impacting potentially 93% of jobs today. However, the report also underscores that AI is not a blanket solution for advancing labor productivity: human involvement and adaptable operations continue to be vital to capturing the full value potential of AI.

Cognizant's analysis for New Work, New World 2026 is based on a reassessment of 18,000 tasks and 1,000 jobs in the O*NET labor database, with a focus on how jobs and tasks could be assisted or automated by AI. Specifically, the new study points to an accelerated pace of change in "exposure scores"—the degree to which a job can be assisted or automated by AI—and highlights how those evolving changes can influence labor and enterprise success.

"We're seeing significant capital flow into AI, and the rapid adoption of these technologies is reshaping the workplace," says 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. Companies that focus on these essentials will unlock the true value of AI."

Kumar continues: "Human skilling becomes the bridge through which today's AI spending translates into tomorrow's tangible results. 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. As a result, new job roles will emerge to harness this opportunity."

Cognizant's "New Work, New World 2026" report reaffirms that human knowledge and judgment remain essential to harnessing AI's full potential. It emphasizes that much of AI's value potential remains untapped without the power of human intelligence and involvement. There is still much work left to be done by human hands across job tasks that AI may never assist with, let alone automate. The potential of AI resides in skilling workers and freeing them up for higher order thinking—creative agility, fresh thinking and novel ideas that can transform business operations. 

Other key highlights from the report's findings include:

• AI is changing the workforce far more quickly than projected: The report finds the average exposure score across jobs is 39% today, which is 30% higher than what the original forecast was for 2032. This means more tasks can be assisted or automated by AI, sooner than originally predicted. These exposure scores are also now increasing by 9% annually, compared with 2% in the original research. Some notable changes in exposure scores across jobs include legal (from 9% to 63%), education (from 11% to 49%), healthcare practitioners (from 10% to 39%) and C-suite roles, including CEO (from 25% to 60%).
• Knowledge work is not disappearing, nor is manual work completely insulated: The impact of AI is evolving across sectors. Roles in computer and mathematics, once seen as highly exposed to AI, no longer top the report's exposure scores – indicating rapid advancements in AI may have reached their limits in some knowledge work areas. Meanwhile, the research reveals AI could significantly impact manual labor jobs at a faster rate than previously understood. For example, the exposure score for transportation rose from 6% to 25%, and in construction it rose from 4% to 12%.
• All told, AI can perform $4.5T in labor productivity today across a wide variety of roles: Through increased automation, AI has the potential to deliver significant value to businesses and the economy today. According to the new report, fewer tasks are left untouched by automation. The percentage of tasks that are non-automatable by AI has plummeted, from 57% on average across tasks in 2023 to 32% today.
• Simultaneously, realizing full AI value from labor is not a one-size-fits-all strategy: The report revealed AI is unable to automate upwards of 40% of management, business/ financial operations and administrative tasks, signaling a critical reality: AI alone can't fully replace humans, and human expertise and collaboration remain indispensable. To tap into the $4.5T in labor productivity, businesses must create flexible operating models that can adapt to new and evolving AI capabilities. They must also treat workforce learning as a rapid response mechanism so employees can continuously keep pace with change and effectively leverage AI to deliver meaningful growth.

To read the full report, visit the website here.

About Cognizant:
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

Cognizant remains committed to empowering the next generation of talent through its Synapse program, which aims to reach two million individuals globally by 2030, creating new pathways to opportunity and preparing the workforce for the jobs of the future. To learn more about Cognizant's Synapse skilling initiative, visit the website here.

Forward-Looking Statements

This press release includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties and assumptions as to future events that may not prove to be accurate. These statements include, but are not limited to, express or implied forward-looking statements relating to the adoption of AI and the labor value of such adoption, the effects and speed of impact of AI on the workforce and the economy and the effectiveness of businesses' efforts to capture the full potential of AI through skilling and human involvement. These statements are neither promises nor guarantees but are the findings of the studies discussed above and remain subject to a variety of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those contemplated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause outcomes to differ materially from those expressed or implied include general economic conditions, the impact of technological development and competition, the competitive and rapidly changing nature of the markets we compete in, the competitive marketplace for talent and its impact on employee recruitment and retention, and the other factors discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

For more information, contact:

US Gabby Gugliocciello Email gabrielle.gugliocciello@cognizant.com

Europe / APAC Sarah Douglas Email sarah.douglas@cognizant.com

India Vipin Nair Email Vipin.nair@cognizant.com

 

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SOURCE Cognizant

FAQ

What did Cognizant (CTSH) report on Jan 15, 2026 about AI's economic impact?

Cognizant reported AI can unlock $4.5 trillion in U.S. labor productivity today and potentially affect 93% of jobs.

How did Cognizant calculate the $4.5T figure in the New Work, New World 2026 report?

The estimate is based on reassessing 18,000 tasks and 1,000 jobs in the O*NET database to measure AI exposure and task automation potential.

What is the current average exposure score reported by Cognizant and how fast is it rising?

The report cites an average exposure score of 39%, rising at about 9% annually.

Which job categories saw the largest exposure score changes in Cognizant's 2026 report?

Notable changes include legal (9% to 63%), education (11% to 49%), healthcare practitioners (10% to 39%) and CEO roles (25% to 60%).

Does Cognizant say AI will replace managers and administrative staff (CTSH)?

No; the report finds AI cannot automate upwards of 40% of management, business/financial and administrative tasks, indicating continued human roles.

What practical steps does the Cognizant (CTSH) report recommend for companies to capture AI value?

The report emphasizes workforce skilling, flexible operating models and contextualizing AI solutions to business problems to realize productivity gains.