90% of executives say AI hasn’t boosted productivity. Some are still cutting jobs
Nine out of ten executives state that AI has not increased productivity, though many companies continue to cut staff. This disconnect has led CEOs to adjust their messaging regarding the relationship between AI integration and workforce reductions. While some firms focus on maintaining worker trust during an AI backlash, others are using the technology as a justification for layoffs, often claiming employees are not being replaced by AI despite the ongoing job cuts.
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- ✓ Nine out of ten executives state that AI has not increased productivity, though many companies continue to cut staff.
- ✓ This disconnect has led CEOs to adjust their messaging regarding the relationship between AI integration and workforce reductions.
- ✓ While some firms focus on maintaining worker trust during an AI backlash, others are using the technology as a justification for layoffs, often claiming employees are not being replaced by AI despite the ongoing job cuts.
What changed
Executives now report a widespread failure of AI to boost productivity despite continued job cuts.
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90% of Executives Report No Productivity Gain from AI Amid Layoffs
Nine out of ten executives state that AI has not increased productivity, though many companies continue to cut staff. This disconnect has led CEOs to adjust their messaging regarding the relationship between AI integration and workforce reductions. While some firms focus on maintaining worker trust during an AI backlash, others are using the technology as a justification for layoffs, often claiming employees are not being replaced by AI despite the ongoing job cuts.
Why it matters
The tension between AI investment and actual output affects corporate strategy and employee morale. Companies are struggling to balance the promise of automation with the reality of stagnant productivity. This creates a trust gap between leadership and staff.
Still unconfirmed
- 90% of executives say AI hasn't boosted productivity
- Companies are cutting jobs while claiming workers are not being replaced by AI
- CEOs are shifting their messaging regarding AI and layoffs
- Companies are facing an AI backlash and attempting to maintain worker trust
What to watch next
- Data on productivity metrics from a broader sample of industries
- Company-specific disclosures on the direct cause of AI-related layoffs
- Internal policy changes regarding AI worker trust initiatives
confidence 60%Sources used for this update (5)
- Fortune — 90% of executives say AI hasn’t boosted productivity. Some are still cutting jobs
- CNBC — America's AI backlash: How the effort to keep worker trust is evolving inside companies
- Axios — CEOs shift messaging around AI and layoffs
- The Times of India — Most companies across America laying off employees seemingly have a new slogan: Not being replaced by ...
- inc.com — The AI Question Every CEO Should Be Asking Instead of ‘Who Can We Cut?’
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