Study Shows AI Barely Boosts Productivity, Layoffs May Backfire

A US survey found over 90% of executives say AI didn't affect jobs in the past three years, and about 89% say it didn't boost productivity at all. Professor Mark Ma from the University of Pittsburgh says companies are investing in AI while cutting jobs, which is contradictory.

He explains that using AI as a reason for layoffs makes employees dislike AI, which lowers productivity. Stock markets show almost zero average returns from layoff announcements. Companies like Meta struggle with low morale after messy layoffs.

Experts suggest companies should stop justifying layoffs with AI. Employee attitudes are key to getting real value from AI. Managers need to rebuild trust with stressed workers, or AI investments may not pay off.