Gartner on Wednesday said that it expects 30% of the positions eliminated by AI-related layoffs to be refilled by 2029, suggesting that the initial terminations were ill-advised and excessive.
“When business and IT executives look back on the early AI era, they will realize their greatest mistake was believing that work automation was the point, when workforce amplification was the opportunity,” said Tori Paulman, VP analyst at Gartner. “The competitive advantage will go to the CIOs and business executives who build an AI-shaped organization where AI value compounds by reshaping roles and allowing workflows to cross traditional boundaries, increasing velocity and reducing friction.”
The Gartner report noted that it is finding that the cuts “deplete talent pipelines and erode institutional knowledge.” Beyond the immediate workforce disruptions associated with any mass layoff, companies will also face steep increases in costs for recruitment, training, and onboarding.
It also predicted that, by 2027, “75% of organizations that prioritize capturing AI productivity gains as cost savings will be eclipsed by competitors that aggressively reinvest those gains into innovation, modernization and upskilling.”
