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Tom’s Guide
Tom’s Guide
Technology
Amanda Caswell

Half of AI job cuts will be reversed by 2027 — and it reveals the biggest mistake companies are making

Woman using computer to conduct a video meeting.

For the past two years, we've been flooded with warnings about AI replacing workers. And, every few weeks, another company announces layoffs. If you've spent any time on LinkedIn lately, you'd be forgiven for thinking the future workplace will consist of a handful of managers overseeing armies of AI agents.

But a new prediction from research firm Gartner suggests the reality may be far more complicated. According to the report, by 2027, half of the companies that replaced customer service agents with AI are expected to hire them back. The pivot isn't happening because AI failed, but because executives are discovering a critical distinction: reducing your payroll and adding real value are not the same thing.

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