'Workforce reductions may create budget room, but they do not create return': Gartner warns companies relying on layoffs to free up room for AI may be caught out in the long run

• High ROI companies are laying off at the same rate as low ROI companies
• The best returns come from investing in human skills and jobs
• Net job creation could happen as soon as 2020-2029

Four in every five organizations that have piloted or deployed autonomous AI agents have also reported workforce reductions, new Gartner research has claimed - however the research giant fails to link layoffs and business autonomy to meaningful ROI improvements.

According to Gartner, companies high higher ROI from autonomous AI reduced staff at roughly the same rate as companies with poor or negative returns, implying that agentic AI isn't a key job cut driver, but rather other factors are at play.

As a result, analysts argue cutting jobs may free up budget, but it does not create business value in itself.

AI and job cuts aren't that closely linked after all

In fact, from the analysis, it's...

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