Gartner warns AI layoffs could force rehiring by 2029
Article excerpt
Four shifts are shaping the future of work as artificial intelligence changes how organisations operate, according to Gartner. The research group also forecast that by 2029, 30% of employees laid off because of AI replacement will need to be rehired. The finding points to a risk for companies using AI mainly to cut headcount: tighter labour markets and lost institutional knowledge could drive up later hiring, training and onboarding costs. Tori Paulman, VP Analyst at Gartner, said executives risk misunderstanding AI's main value if they focus too narrowly on automation. "When business and IT executives look back on the early AI era, they will realise their greatest mistake was believing that work automation was the point, when workforce amplification was the opportunity," Paulman said. She added that the organisations that benefit most will be those that redesign roles and workflows rather than remove workers too quickly. "The competitive advantage will go to the CIOs and business executives who build an AI-shaped organisation where AI value compounds by reshaping roles and allowing workflows to cross traditional boundaries, increasing velocity and reducing friction," Paulman said. Rehiring risk Short-term workforce cuts can weaken a company's talent pipeline at a time when labour force growth is flat or declining in many parts of the world. In that environment, businesses...
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"The Gartner 2026 Hype Cycle for the Future of Work shows that as early AI investments hit the Trough of Disillusionment, the challenge facing CIOs and business executives is no longer technological; it is using AI to amplify human intelligence, expertise and creativity (see Figure 1)," Paulman said.
