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Companies are bringing back 5% of those fired due to AI implementation failure

Many companies began bringing back employees fired because of artificial intelligence. Analytics company Visier studied employment data of 2.5 million employees from 142 companies worldwide. About 5% of fired employees subsequently returned to their previous employer. This indicator remained stable for several years, but recently began to rise.

Although AI-based agents are expanding across all industries, Visier’s findings show: these systems rarely completely replace a human. They automate only part of the tasks, which leads to a shortage of human resources. And the costs and complexity of AI integration are growing.

Visier’s data is consistent with a study by the Massachusetts Institute of Technology. Which shows that about 95% of organizations have not yet received tangible financial returns from investments in artificial intelligence.

And then it gets really sad. According to data from workforce planning platform Orgvue, companies spend approximately $1.27 for every dollar saved through staff reductions. This indicator includes severance packages, unemployment insurance and other indirect expenses.

It turns out, companies fire people for the sake of artificial intelligence that doesn’t cope. Then bring employees back. And end up spending more money than they save.

Autor: AIvengo

For 5 years I have been working with machine learning and artificial intelligence. And this field never ceases to amaze, inspire and interest me.

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