A new wave of global research highlights growing anxiety among workers and mixed outcomes for companies as artificial intelligence (AI) adoption accelerates. According to a report published Friday, only 44% of employees feel they are thriving at work, with a significant decline in worker confidence attributed to fears of AI-driven job displacement [1]. The report, based on a Mercer survey, found that 99% of senior managers anticipate at least some staff reductions as AI is incorporated into their organizations [1]. This uncertainty is prompting many employees to consider retraining or upskilling to remain competitive in an increasingly automated environment [1].
A separate Gartner study of 350 global business executives at companies with at least $1 billion in annual revenue found that about 80% of organizations piloting or deploying autonomous business capabilities reported workforce reductions [2]. However, these layoffs did not clearly produce better returns on investment. The study revealed that workforce reduction rates were nearly equal among companies reporting higher returns and those seeing only modest gains or worse outcomes [2]. Gartner's Helen Poitevin stated, "Workforce reductions may create budget room, but they do not create return," emphasizing that companies seeing stronger gains were investing in skills, roles, and operating models that allow humans to guide and expand autonomous systems rather than simply cutting jobs [2].
The findings suggest that while AI is often cited as the reason for layoffs, the reality is more complex. Some companies may use AI as a justification for cuts that serve other purposes, such as funding expensive AI projects or masking pre-planned layoffs [2]. OpenAI CEO Sam Altman has criticized this trend, calling it "AI washing"—where companies blame AI for layoffs that may have other causes [2]. Both studies underscore the challenge organizations face in maintaining workforce morale and confidence while managing transitions and potential job losses as AI adoption continues [1][2].
Gartner's research points to a more effective approach: companies that use AI to augment human capabilities—described as "human-amplified business"—are seeing better outcomes, as AI enables workers to move faster, catch problems earlier, and spend more time on higher-value tasks [2].
CONCLUSION
The latest research shows that AI-driven layoffs are eroding worker confidence globally, but do not guarantee improved company performance. Companies investing in human-AI collaboration, rather than simply reducing headcount, are more likely to see positive returns. The market faces ongoing uncertainty as organizations balance automation with workforce stability.