The analysis demonstrates What's fascinating this is Ary·Artificial IntelligenceThe companies laying off staff for AI today will regret it in five yearsBy Alexandra EbertBy Alexandra Ebert Alexandra Ebert is Chief AI & Data Democratization Officer at Mostly AI.
Alexandra Ebert believes AI can support creative people, but it can’t replace them (which is quite significant). Courtesy of mostly aiYou’ve bably seen the headlines, given the current landscape.
“AI job cuts. On the other hand, ” “Automation replacing humans. ” Some CEOs are even ud of it.
OpenAI CEO Sam Altman says the next billion-dollar company could consist of one person thanks to AI advances.
Meanwhile, Anthropic CEO Dario Amodei thinks AI could eliminate nearly half of all entry-level white-collar jobs in five years Already this year, more than 64,000 people have been laid off across the sector, with Microsoft and Intel leading the charge and AI being a major factor, in today's market environment.
People innovate, AI imitates Not only is this short-sighted, it’s fundamentally bad, in this volatile climate.
The data indicates that companies cutting people today in the name of AI will be the ones playing catch-up tomorrow. There's no doubt that AI is excellent at doing more with less.
The analysis reveals speeds up cesses, cuts down repetitive work, and buys back time (noteworthy indeed), in this volatile climate.
But AI on its own cannot create the next generation of ducts and services, given current economic conditions. The es that win in the long term are the ones that innovate. That create new ducts.
Additionally, That reimagine how things should work, and find radical breakthroughs that impress their customers in new ways. Furthermore, The data backs it up, amid market uncertainty.
Meanwhile, McKinsey found that companies with innovation baked into the culture are 3. Moreover, In contrast, 5 times more ly to outperform their competitors.
And history supports it as well—just ask Blockbuster. Back in the early 2000s, it had strong fits and a large customer base.
On the other hand, But what it lacked was the foresight to use its leading position to build the next wave of value. Furthermore, Netflix built it instead.
And that kind of creative thinking still only comes from people (quite telling), given the current landscape. Ultimately, it comes down to this: AI doesn’t invent. It recycles.
It’s trained on other people’s ideas, imitates patterns, and doesn’t jump the curve. Additionally, That’s not a flaw—that’s how AI is designed.
As academic Mark Runco puts it: “AI can only duce artificial creativity. ” It can support creative people, but it can’t replace them.
If your strategy is to lay off the people who could create the next big thing—good luck, amid market uncertainty.
Moreover, You might run a tighter ship, at least in the short term, but don’t be surprised when your duct roadmap starts to fall flat.
In contrast, How AI can really unleash creativity So, if you’re leading a large, what should you do instead. Keep hold of your talent.
Tell your team to use the extra time they have freed up with AI to innovate. Give your people the headroom to think.
Some of the world’s most successful—and perhaps more importantly fitable—ducts started as side jects inside Google, among them Gmail and AdSense, in today's financial world.
Additionally, Not because they were asked for. But because smart people had the space and time to explore, given the current landscape.
At the same time, Imagine if those same people had been made redundant the quarter before. That’s exactly what is happening right now.
Too many leaders are taking the efficiency gains of AI and passing them straight to the bottom line. They’re juicing short-term fits and calling it innovation.
Nevertheless, AI limitations And that’s before you even factor in the risk that many of these so-called “efficiencies” may never materialize.
For all the AI hype, humanity doesn’t have the greatest track record when it comes to predicting the future, amid market uncertainty.
If the magazines of the 1950s and 1960s were right, we’d be commuting to work with jet packs and cleaning our s with nu-powered hoovers by now. The same might apply here, amid market uncertainty.
Embedding AI into real-world cesses is hard, especially when it comes to sophisticated knowledge work.
This leads to the conclusion that re are nical limitations, privacy minefields, and the unsolved blem of how to fix or debug AI agents when they go off course (fascinating analysis), given current economic conditions.
So, there’s every chance that some of the companies laying off staff today will find themselves quietly rehiring in a few years, once they realize the isn’t as capable as they thought (fascinating analysis).
Taken together, the winners won’t be the companies that cut deepest. However, They’ll be the ones that keep the right people, give them space, and leverage AI to push their creativity even further.
AI is rewriting the rules of. On the other hand, What matters now is how you choose to use it. Where one company sees an opportunity to cut headcount, another sees a chance to build something new.
However, Only one of those will still be leading the market in five years. The opinions expressed in Fortune.
Com ary pieces are solely the views of their and do not necessarily reflect the opinions and beliefs of Fortune (noteworthy indeed).
Nevertheless, Read more: As CEOs predict AI will replace humans in just 5 years, this Fortune 500 boss says taking the focus off real people is a ‘recipe for failure’ AI is replacing human connection as it boosts ductivity.
Success requires elevating relationships while embracing the nology Goldman Sachs CIO: We must prepare AI natives to shape the future of work—as only they can I’m leading the largest global law firm as AI transforms the legal fession (noteworthy indeed), in light of current trends.
Lawyers must double down on this one skillIntroducing the 2025 Fortune 500, the definitive ranking of the biggest companies in America. Explore this year's list.