AI Business
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Study finds AI-related layoffs are not delivering expected returns for companies
May 11, 2026
AI Summary
A study by Gartner reveals that many companies reducing their workforce due to AI are not seeing the anticipated returns from such automation. Instead, businesses that enhance worker productivity with AI report better outcomes than those focused solely on layoffs.
- A survey of 350 global business executives revealed that many companies are cutting jobs regardless of AI adoption.
- 80% of executives who have piloted AI technologies reported workforce reductions, but these layoffs often do not correlate with actual returns from AI.
- Helen Poitevin from Gartner emphasized that focusing on layoffs as a measure of AI value is shortsighted and may lead to limited returns.
- Companies achieving high ROI from AI are using it to enhance employee productivity rather than replacing workers.
- There is a divide among business leaders regarding AI's role, with some expecting it to assist in decision-making while others anticipate full automation.
- Layoffs attributed to AI have been prevalent, particularly in Silicon Valley, with 49,135 layoffs reported in 2023.
- However, many layoffs may be influenced by other factors, such as budget reallocations for AI infrastructure, rather than direct displacement by AI.
- The concept of
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