Gartner: AI Layoffs Are Not Improving ROI

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A new Gartner survey is challenging one of the big drivers of the AI boom: cutting workers to fund AI initiatives will automatically improve financial performance.

The research, based on a survey of 350 enterprises with more than $1 billion in annual revenue, found that 80% of companies deploying AI systems had reduced headcount. But according to Gartner, those cuts showed “no correlation” with improved returns on investment.

“Among organizations piloting or deploying autonomous business capabilities, approximately 80% report workforce reductions, according to a survey by Gartner, Inc., a business and technology insights company. However, those reductions do not appear to translate into return on investment (ROI).” – Gartner Survey, May 2026

Instead, the companies reporting the strongest results from AI were the ones increasing investment in people. Gartner said organizations seeing higher returns tended to focus on workforce training, governance, and the creation of new operational roles designed to support AI adoption.

“Workforce reductions may create budget room, but they do not create return,” said Helen Poitevin, VP Analyst at Gartner.

The data suggests many companies may be misunderstanding where AI-driven value actually comes from. Gartner says “human-amplified,” organizations rather than “human-less” are the highest-performing.

We better figure it out soon. Boston Consulting Group estimates that more than half of U.S. jobs could be substantially altered by AI within the next several years.

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