Firms prioritize growth over job cuts after AI productivity gains

🎯 Impact Sentiment: Neutral

📋 Summary

• Only 17% of companies adopting AI have actually reduced their workforce due to productivity gains, according to EY’s survey.
• Most firms are channeling the benefits from AI into growth areas: new AI investments, cybersecurity, R&D, and employee upskilling, rather than mass layoffs.
• While high-profile layoffs tied to AI do make headlines, EY’s data shows companies are aiming to become more capable and competitive, not just to cut costs.
• AI-related investments are rising sharply, with a large majority of organizations seeing significant productivity and financial performance improvements.

💡 JR Insights

• 💼 Implication: Companies are treating AI as an accelerator for business growth, not just a shortcut to shrink headcount. That’s a good sign if you’re willing to learn and adapt, since they're investing heavily in new skills and tech.
• 🚨 Risk: Don't ignore the fact that some jobs are absolutely being cut—especially in roles that are easy to automate. The attention on upskilling could leave behind workers who don't, or can't, quickly adapt to new tech demands.
• ✨ Takeaway: If you stay on top of new tech, continuously develop your skills, and focus on roles that leverage human judgment and creativity, you’ll be better positioned as companies lean into AI for growth rather than just for cuts.