"A survey of 350 global business executives with an annual revenue of at least $1 billion by the research and advisory firm Gartner found that many have reduced their workforce irrespective of AI adoption. While 80% of those surveyed who have piloted an AI or autonomous technology have reported workforce reductions, the businesses cut jobs due to automation regardless of whether the technology was actually generating returns."
"“Looking only at layoffs is shortsighted in terms of getting value from AI,” Helen Poitevin, VP analyst at Gartner and a key researcher of the study, told Fortune. “Chasing value only through headcount reduction is likely to lead most organizations down a path of limited returns.”"
"Poitevin said the companies reporting high ROI were not the same ones reporting AI-related workforce reductions. In fact, workforce reduction rates were nearly equal for those reporting higher ROI and those with smaller returns or even worsened outcomes from autonomous operations. “That's not where the value is,” she"
A survey of 350 global business executives found many companies reduced workforce size even when AI adoption did not produce strong returns. Among executives who piloted AI or autonomous technology, 80% reported workforce reductions. Job cuts were reported as driven by automation whether or not the technology generated returns. High ROI and workforce reduction were not concentrated in the same companies, and workforce reduction rates were similar across higher ROI, smaller returns, and worsened autonomous outcomes. The view that AI will displace white-collar workers by cutting labor costs is questioned, with some economists pointing to Jevons paradox as a reason AI could increase demand and employment. The emphasis on layoffs is described as a narrow approach to capturing AI value.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]