ompanies may have jumped the gun on trimming their workforces in favor of AI, according to one new report.
Research from Gartner published on Monday predicts that 50% of companies that cut staff due to AI will likely rehire staff to perform similar work. Though there’s much talk about how AI will entirely upend certain jobs, companies eager to cut staff will likely run up against the technology's limitations.
Gartner’s research stands in stark contrast to the litany of reports detailing the mass displacement and unemployment that AI could induce. MIT researchers found that AI could replace nearly 12% of the labor market as it stands, and McKinsey estimated that AI and robotics could automate activities accounting for 57% of US work hours.
While many companies have already begun ramping up their AI efforts as they cut staff, including firms like HP, Salesforce, Accenture, and Klarna, they may simply be using AI as an excuse to cut costs.
“Most recent workforce reductions were influenced by broader economic conditions rather than automation alone,” Kathy Ross, senior director analyst in the Gartner Customer Service and Support practice, said in a statement.
However, just because companies rehire the staff they cut doesn't mean they’ll abandon their AI deployments entirely. In fact, it may pressure organizations to find other ways to leverage their AI investments. Meta, for example, is now grading workers on it, as it officially ties employee performance to their AI usage, according to The Information.




