- 55% of the companies that got AI-induced redundancies to regret it
- 38% of leaders still don’t understand AI’s influence on their business
- People are important but AI -Investments continue to rise
According to organizational planning platform Orgvue, two out of five (39%) made British companies layoffs due to their AI venue and hope of the technology, but more than half (55%) of them are now admitted that these redundancy decisions were incorrect.
Consequences of AI-induced redundancies include widespread internal confusion that leads to employees who stop and a decrease in productivity-the exact contradiction to what companies had originally hoped for with the implementation of artificial intelligence.
After seeing how it is played, companies are now less likely to believe that AI will, after all, replace human workers.
Business leaders sorry for prioritizing AI over human workers
The report reveals enormous amounts of uncertainty about AI’s impact on the workforce. Two out of five (38%) managers still do not understand AI’s influence on businesses, with 25% uncertain what roles are most exposed to AI.
Despite only 48% of managers expecting AI to replace some workers compared to 54% last year, leaders allegedly feel less responsible for protecting their workforce from redundancies.
“While 2024 was the year of investment and optimism, companies learn the hard way that replacing people with AI without fully understanding the impact on their workforce can go badly,” noted the Orgvue CEO Oliver Shaw.
“We face the worst global skill shortage of a generation and reject employees without a clear plan for workforce -transformation is reckless.”
Looking ahead, almost half (47%) fears uncontrolled AI use of employees, with four out of five planning to retrain employees to use the tools properly. Two out of five (41%) have already increased their learning and development budgets accordingly, with half (51%) introducing internal AI use policies and 43%working with third-party AI specialists.
Although it is clear that human workers are fundamental to businesses, 80% plan to increase the AI investments in 2025, but still 27% are still missing a clear roadmap.
Generally, Orgvue’s research paints a troubled image of the state of AI, which highlights a total lack of understanding. “While it is encouraging to see investments in AI continued to grow, companies need a better understanding of how technology will change their workforce in the coming months and years,” concluded Shaw.
