Forrester: Companies regret many AI-related layoffs

A new report from Forrester suggests that many companies that have been cutting workers in the name of AI are likely to face a backlash, according to The Register.

“Many companies claim they are laying off staff because of AI. Some of these ventures lead to spectacular failures…. Other times, AI doesn’t actually replace human workers at all. Too often, company management lays off employees based on the future promise of AI,” the research firm said.

According to the analysis, 55% of employers now regret laying off staff because of AI. In addition, more decision-makers responsible for AI investments believe the technology will increase the workforce in the coming year, rather than reduce it. “We predict that much of this work will be placed on low-paid workers, either offshore or at lower wages,” Forrester said.

HR functions, in particular, risk being hit hard. Those departments are expected to be dramatically downsized, while still being expected to deliver the same level of service with AI tools.