Artificial Intelligence (AI) is rapidly changing the way organizations work and how employees perform their jobs, especially in the IT and commerce sectors. This study aims to understand the impact of AI on workforce transformation by examining changes in job roles, skills, and work processes in these two domains. In the IT sector, AI is widely used in areas such as software development, data analysis, cyber security, and system automation, which has improved efficiency and reduced manual workload. At the same time, new roles requiring technical expertise and problem-solving skills are emerging.In the commerce domain, AI has transformed traditional business functions like accounting, customer service, inventory management, and digital payments through automation and smart decision-making tools. While AI helps organizations save time and improve accuracy, it also creates challenges such as fear of job loss, lack of technical skills, and resistance to change among employees.The study is based on secondary data collected from research articles, industry reports, and case studies. The findings show that AI does not completely replace human workers but changes the nature of work by shifting focus from routine tasks to more analytical and strategic roles. The study concludes that successful workforce transformation depends on continuous skill development, employee training, and supportive organizational policies to ensure smooth adaptation to AI technologies.