Many firms are rapidly reducing workforce sizes to tout AI-driven efficiency, but experts predict a reversal of these moves, with roles being filled again, often overseas or at reduced salaries. Forrester’s “Predictions 2026: The Future Of Work” study anticipates that half of AI-linked layoffs will be undone.

The report suggests that companies claim layoffs are due to AI efficiencies, but these claims sometimes result in significant failures. Often, AI does not actually replace human roles as intended, and decision-makers lay off employees banking on future AI capabilities. This backfires financially approximately 55% of the time as those retained realize replacing skills with AI was premature.

Instead of overall reduction, more stakeholders involved in AI investment foresee an increase in staffing numbers, with 57% predicting headcount growth against the 15% expecting reductions. Many displaced workers, while laid off initially, are expected to return under less favorable terms, possibly offshore or with reduced wages, particularly in HR departments now heavily integrating AI tools to maintain service levels.

Further, Forester warns that companies are turning to vendor AI offerings that embellish their capabilities under the guise of readiness, while few have the tools to distinguish between genuine and superficial technology.

Other analyses predict struggles with AI efforts, as noted by Gardner’s revelation that a considerable proportion of AI projects won’t reach completion due to cost concerns, unclear benefits, or poor risk management. AI’s role in customer relationships management also shows inconsistencies since new benchmarks reveal efficiency gaps and confidentiality misunderstandings.

Despite re-evaluation by firms like Klarna and Duolingo on their aggressive AI strategies, the technology sector continues to see job losses. As AI capabilities are increasingly marketed as a means to enhance productivity, companies like Salesforce have publicly announced thousands of positions slashed by automating support functions, while predicting redeployment opportunities for some workers.

Recently, Amazon announced significant job cuts, crediting AI for operational changes that make these roles obsolete, although it remains to be seen if this trend of leveraging AI claims will sustain or see more roles recreated at minimized costs.