The companies laying off staff for AI today will regret it in five years

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

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

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’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

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)

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

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