The Complexities of AI in the workforce

The Complexities of AI in the workforce

June 2026

AI has become front of mind for many business and industries. As with anything new there is pushback and growing pains regarding this endeavor. Perhaps one of the biggest concerns at the moment, besides the environmental impact, is the fact that some companies have begun replacing workers and other jobs with AI. At the same time, the costs are making some companies reconsider.

The Revolution in AI has been tremendous in regard to getting processes done. But it appears that not everyone is enjoying it. As AI becomes more integrated, jobs that would go to certain level workers begin to fade away as their companies begin to convert or supplement their jobs with AI. According to BCG, “Over the next two to three years, 50% to 55% of jobs in the US will be reshaped by AI. For many employees, this will mean that they retain the same or a similar role but face radically new expectations for how they work and what they produce. For company leaders, it will require a clear vision for how the transformation is managed, including a scaled, strategic approach to upskilling and reskilling and the restructuring of career ladders.” (1)But at the same time, it also means that the entry-level jobs that most people need to enter the workforce. This could create a job market that is much smaller than expected in the next 10 years.

Entry level jobs aren’t the only ones facing issues. Higher-level jobs face an uncertain future. In one case, a company installed a third-party software to examine their cybersecurity needs. This in effect made a senior analyst position redundant. But the way they laid them off became a point of contention as they used an unrelated case to let him go. Those in the know knew that was not the reason and there was no reason to let them go other than the fact their job was terminated solely because of AI. They are now in litigation over potential wrongful termination from the EEOC.

Despite the investment in AI, some companies are beginning to regret the AI-connected layoffs. In a survey conducted by Careerminds in February, “Two in three employers that cut jobs due to artificial intelligence are already rehiring laid-off workers, often within months of the original layoffs, as many companies confront the unexpected limits of automation in replacing human roles, according to a new study by Careerminds, which surveyed 600 HR professionals in February 2026 who carried out layoffs in the past year.

According to the same report:

• Nearly one-third (32.9%) of HR leaders said their organizations lost critical skills and expertise after laying off employees during AI-driven restructures.
• A further 28.1% said the remaining workforce lacked the capabilities needed to fill those knowledge gaps. Entry-level roles were hit hardest by AI-led layoffs, with 31.5% of HR leaders identifying them as the most affected group. Mid-level contributors followed at 15.6%.
• The cost savings that motivated many of these decisions have also proven less certain than expected. While automation is often viewed as a route to lower operating costs, nearly 31% of organizations said rehiring staff ended up costing more than they had saved by eliminating those roles.
• Another 42.4% said the savings and rehiring costs roughly cancelled each other out, leaving only about a quarter of organizations financially ahead. (2)

Nowhere is this more apparent recently than Fords announcement of bringing back 350 engineers they laid off due to AI. The layoffs were seen as a way to reduce costs and hope to be able streamline the production process. To their detriment, AI could not see the nuances that veteran engineers could see and as a result, multiple mistakes and recalls have occurred.

"Mistakenly, we thought that by just introducing artificial intelligence and ingesting the design requirements that we had, that would produce a high-quality product," said Charles Poon, vice president of vehicle hardware engineering. "Over prior years, we didn't pay as much attention as we should have to the experience of our most knowledgeable engineers who have been with us through many product cycles."(3)

AI is becoming integrated into the everyday workforce. While seen as a great way to smooth production and streamline it, it comes with its own pratfalls. This includes making certain jobs redundant. But not everything can be done with AI, sometimes a human touch is needed to make the balance work.

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