Companies are Rehiring Former Employees Because AI Did Not Deliver Expected Results

Companies that expected big results from AI technologies are now rehiring employees they previously laid off, according to TechSpot.

The Visier analytics center studied data on 2.4 million workers worldwide and found that some companies have started to rehire. About 5.3% of those laid off have returned to their positions.

This situation shows that AI has not yet completely replaced jobs as expected. Usually, automation only automates part of a task.

Implementing AI is not as easy as anticipated. Every AI system requires major spending on infrastructure, security, and data. Miscalculations force the rehiring of other specialists.

According to MIT research, 95% of companies have not seen clear financial benefit from their AI investment. Interactive Brokers strategist Steve Sosnick says these expenses are unreasonable.

Also, according to Orgvue data, layoffs cost $1.27 for every $1 saved. This includes compensation, insurance, and other expenses.