Companies rehiring workers after AI cutbacks disappoint

Summarised from 2 outlets · Updated 29 Oct, 17:51 · Archive

Some companies that cut jobs for artificial intelligence are rehiring workers after AI systems underperform.

Companies including Microsoft, Barclays Bank and Kroger have announced significant job cuts this year, citing artificial intelligence as the reason. Some positions were eliminated as redundant, while others were cut to free up money for developing and deploying AI technology. The cutbacks are affecting tens of thousands of workers.

However, some companies have discovered that their AI models, applications and agents do not perform as well as expected. This has led them to rehire workers for the same or similar positions they eliminated. The phenomenon has acquired a nickname: the 'AI boomerang'.

Hiring managers in finance, marketing, legal and healthcare told staffing firm Robert Half that they had rehired people because the roles required human oversight and skills such as relationship management and quality control. Bill Driscoll, a senior district president at Robert Half, said that critical thinking, collaboration, creativity and institutional knowledge are things AI cannot replicate. Lucy Beaumont, a global senior vice president at employment testing company SHL, confirmed the trend is occurring 'in real time'.

Klarna, the Swedish buy-now-pay-later provider, began recruiting human customer service representatives again last year.

How it is being reported

• What to consider if a company that made AI-related job cuts wants you backCompanies have been slashing jobs to invest in artificial intelligence, raising anxiety among workers who fear they may lose their livelihoods to machines.Clickorlando · 29 Oct, 17:22
• What to consider if a company that made AI-related job cuts wants you backCompanies have been slashing jobs to invest in artificial intelligence, raising anxiety among workers who fear they may lose their livelihoods to machines.News4Jax · 29 Oct, 17:22

In this story: Microsoft · Barclays Bank · Kroger · Robert Half · SHL · Klarna

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