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Executives love to talk up the benefits of artificial intelligence. So why do many also admit that they have yet to see a major boost in AI-driven productivity among their workers?
Mark Ma, a professor of business administration at the University of Pittsburgh,
noticed this disconnect in his research. He and several colleagues sought answers by analyzing job satisfaction reviews, corporate financial reports and announcements of AI investments, as well as layoffs. It turns out that when proclamations of fresh AI investment go up, so too do notices of job cuts attributed to more use of AI.
This connection between AI adoption and layoffs is why so many employees are souring on AI, Ma believes. They’re told they must embrace a
technology that can also replace them. As a result, their morale drops – and they become less productive.
“Using AI to justify cutting jobs is … a strategic miscalculation that cuts against the benefits of AI,” he writes. “Companies find themselves left with a demoralized workforce and an underwhelming return on AI investment.”
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