AI Boosts, Not Job Cuts

Morningstar Inc. points out that many firms use artificial intelligence as a reason to reduce staff and cut costs instead of using the technology to increase efficiency. The focus in the market is often on what AI could eliminate, not on how it can create value. Analyst Lochlan Halloway noted that companies sometimes cut their workforce because they see AI as a threat. An example is Wisetech Global Ltd. , an Australian logistics software company.When the firm expected AI to replace certain roles, it lowered its headcount before the technology was fully implemented. Instead of moving employees to new tasks, firms may choose to lay them off. This approach misses opportunities for productivity gains that AI can bring. The lesson is clear: companies should use AI to reassign workers and improve performance, not to justify job cuts.