{
  "id": 2189368,
  "title": "Why replacing staff with AI backfires - and 5 ways smart leaders generate real value instead",
  "url": "https://urgent.news/2026/08/20/why-replacing-staff-with-ai-backfires-and-5-ways-smart-leaders",
  "topic": "ai",
  "section": "AI",
  "published": "2026-08-20T17:34:55.000Z",
  "source": {
    "name": "ZDNet",
    "slug": "zdnet",
    "url": "https://www.zdnet.com/article/why-replacing-staff-with-ai-backfires-and-how-smart-leaders-generate-real-value-instead/"
  },
  "original_language": "en",
  "account": "When firms replace employees with AI, they often end up regretting their decision. In the first half of 2026, 126,000 US workers were laid off due to AI-related factors, according to jobloss.ai. Specialist site jobloss.ai reported that organizations that cut jobs due to AI are unlikely to generate the value they hoped for.\n\nIn fact, a study by Careerminds found that 75% of companies experienced increased costs rather than savings from AI layoffs. Moreover, nine out of 10 firms would reconsider their AI-driven job cuts if given the chance. Gartner predicts that 50% of companies that attributed headcount reduction to AI will rehire staff to perform similar functions by 2027.\n\nSteve Lucas, CEO at Boomi, advises businesses to exercise caution when considering AI-enabled layoffs. While AI will undoubtedly change job roles and responsibilities, many of the job cuts attributed to AI are companies seeking a convenient excuse to cut costs. Lucas suggests that professionals question experts who claim AI will mean the end of work as we know it, emphasizing that we are still in the early stages of automation.\n\nStephen Wood, COO at Rathbones Asset Management, believes that the impact of AI on the workplace will be positive rather than negative. He cites the legal industry as an example where AI can assist with tasks but cannot replace human expertise. Wood sees AI as a tool that can enhance the capabilities of skilled professionals rather than replacing them.\n\nTim Chilton, Managing Geospatial Consultant at Ordnance Survey, is using AI to create new value for his organization. His initiative aims to provide staff with a chatbot-style interface that offers timely access to statistics, enabling them to work more efficiently. Chilton emphasizes that the objective is to empower existing staff through innovation, rather than replace them with AI.",
  "summary": "Three-quarters of organizations have found AI layoffs cost more than they saved, and as many as nine in 10 companies would rethink them given the chance.",
  "key_points": [
    "126,000 US workers laid off in 2026 due to AI-related factors",
    "75% of AI-driven layoffs led to increased costs for companies",
    "AI should enhance, not replace, human expertise in the workplace"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}