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Over half of UK businesses who replaced workers with AI regret their decision

Date:
Tue, 29 Apr 2025 18:12:00 +0000

Description:
Two in five companies made workers redundant over AI, but more than half of
them are now regretting their decisions.

FULL STORY

According to organizational planning platform Orgvue, two in five (39%) UK
businesses made redundancies due to their AI adoption and hopes for the
technology, however more than half (55%) of them are now admitted those
redundancy decisions were wrong. 

Consequences of the AI-induced redundancies include widespread internal
confusion, leading to employees quitting and a drop in productivity  the 
exact opposite of what businesses had initially hoped for with the deployment
of artificial intelligence. 

Having seen how it's played out, businesses are now less likely to believe
that AI will replace human workers after all.

Business leaders regret prioritizing AI over human workers

The report uncovers huge amounts of uncertainty over AI's impacts on the
workforce. Two in five (38%) leaders still don't understand AI's impact on 
the businesses, with 25% unsure which roles are most at risk from AI. 

Despite only 48% of managers expecting AI will replace some workers compared
with 54% last year, leaders reportedly feel less responsible in protecting
their workforce from redundancies. 

"While 2024 was the year of investment and optimism, businesses are learning
the hard way that replacing people with AI without fully understanding the
impact on their workforce can go badly wrong," Orgvue CEO Oliver Shaw noted. 

"Were facing the worst global skills shortage in a generation and dismissing
employees without a clear plan for workforce transformation is reckless." 

Looking ahead, nearly half (47%) fear uncontrolled AI usage by employees, 
with four in five planning to retrain employees to use the tools properly. 
Two in five (41%) have already increased their learning and development
budgets accordingly, with half (51%) introducing internal AI usage policies
and 43% working with third-party AI specialists. 

Although it's apparent that human workers are fundamental to businesses, 80%
plan to increase AI investments in 2025, yet 27% still lack a clear roadmap. 

Overall, Orgvue's research paints a troubling picture of the state of AI,
highlighting a total lack of understanding. "While its encouraging to see
investment in AI continue to grow, businesses need a better understanding of
how the technology will change their workforce in the coming months and
years," Shaw concluded.

======================================================================
Link to news story:
https://www.techradar.com/pro/over-half-of-uk-businesses-who-replaced-workers-
with-ai-regret-their-decision

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