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Fortune
Fortune
Wendi Safstrom

Companies are pouring billions into AI and cutting training budgets. It's a losing strategy

safstrom (Credit: courtesy of SHRM)

Businesses are pouring billions into AI to boost productivity and cut costs—and to fund it, they’re slashing hiring, training, and employee support. Headcount isn’t safe either: as Jack Dorsey’s Block recently demonstrated, a growing number of executives are citing AI as justification for substantial layoffs.

That approach may lift short-term margins. But it is a dangerous long-term strategy—and the data makes clear why.

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