‘AI rebounding’ could cost companies
Yahoo Finance ·
Employers are replacing workers with artificial intelligence and then calling them back — but employees are demanding more money to return. Employers that make potentially misguided workforce decisions and replace workers with artificial intelligence only to later try to rehire them could have to pay up, a report released Oct. 29 by talent insights company SHL found. Workers said if they were called back after tech-related job loss that they would require higher pay, a job security guarantee and transparency about AI use, per the report. This “ AI rebounding ” has already taken place at major companies, including Amazon , Ford and Klarna, as AI bets didn’t pan out as planned, leaving employers scrambling for workers. Of the more than 2,000 employed adults in the U.S. and the U.K. surveyed by Propeller Insights for SHL, more than half said they have witnessed AI rebounding — directly, through someone they knew or by hearing about it. In the U.S., nearly 1 in 5 workers said they had firsthand experience with this boomerang phenomenon, compared to 13% in the U.K. “Organizations are making fast, sometimes myopic, decisions about their people based on an incomplete picture of what their employees can do with or without AI,” Lucy Beaumont, global senior vice president of product and design at SHL, said in a statement. “AI rebounding is what happens when a company automates a role before it has genuinely assessed the human capability inside it.” Gartner, meanwhile, predicts that, by 2029, 30% of workers terminated or replaced by AI will be rehired — often at a higher cost. SHL’s report found that 51% of workers would demand a “substantial” raise to return, 42% would need a guarantee about their job security, and 4 in 10 would want “full transparency” about AI’s use in their position. “AI rebounding should be a wake-up call,” Beaumont said.
DYAX Investor Sentiment
Bullish (Long) 51% · Bearish (Short) 49%
397 participants
Related News
- AMD’s Double-Digit Drop Is Rippling Through Your Chip ETFs
- IREN stock plunges 18% as Microsoft raises concerns over data center delays
- Greg Abel's 2 Big Acquisitions This Year Cost Berkshire Hathaway About $16 Billion, Less Than 5% of Its Cash Pile
- What Axcelis Technologies (ACLS) Said on Its Q3 Earnings Call
- What Deutsche Telekom (DTE) Said on Its Q3 Earnings Call
- A Sharp Pullback in Chip Stocks Meets Fresh Records in Four of Five Recent Earnings Reports
