A costly mistake? Report claims a third of employees fired due to AI will need to be rehired in the next few years
Gartner forecasts almost 33% of workers who were displaced by AI will be rehired by 2029 – probably on a higher salary package.
A new report from Gartner predicts that around 33% of employees laid off due to AI implementation could be rehired by 2029. These rehired individuals are expected to have higher salaries than their previous positions. However, 75% of organizations that expect to save costs through AI-driven productivity may be overtaken by competitors investing in modernization and training. This could force companies to shift towards a human-centric approach, where AI focuses on amplifying workforce skills while handling routine tasks.
Gartner's VP analyst, Tori Paulman, warns that this misstep could have severe consequences for businesses and individuals alike. The true potential of AI lies in workforce amplification, not just automation. Organizations that prioritize AI as a means to bolster decision-making, creativity, and leadership rather than dismissing employees to cut costs could find themselves at a competitive disadvantage.
Paulman suggests that companies should adopt a "talent remix" strategy, leveraging AI to reshape roles and redirect workers towards more productive tasks. While the implications of this report may seem dire, there is still ample time to rectify the situation. The prediction of 33% of employees needing rehiring may seem imminent, but the further-off date of 2029 provides an opportunity for organizations to reorganize and adapt to the evolving AI landscape.
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