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   Over half of UK businesses who replaced workers with AI regret their decision   
      
   Date:   
   Tue, 29 Apr 2025 18:12:00 +0000   
      
   Description:   
   Two in five companies made workers redundant over AI, but more than half of   
   them are now regretting their decisions.   
      
   FULL STORY   
      
   According to organizational planning platform Orgvue, two in five (39%) UK   
   businesses made redundancies due to their AI adoption and hopes for the   
   technology, however more than half (55%) of them are now admitted those   
   redundancy decisions were wrong.    
      
   Consequences of the AI-induced redundancies include widespread internal   
   confusion, leading to employees quitting and a drop in productivity  the    
   exact opposite of what businesses had initially hoped for with the deployment   
   of artificial intelligence.    
      
   Having seen how it's played out, businesses are now less likely to believe   
   that AI will replace human workers after all.   
      
   Business leaders regret prioritizing AI over human workers   
      
   The report uncovers huge amounts of uncertainty over AI's impacts on the   
   workforce. Two in five (38%) leaders still don't understand AI's impact on    
   the businesses, with 25% unsure which roles are most at risk from AI.    
      
   Despite only 48% of managers expecting AI will replace some workers compared   
   with 54% last year, leaders reportedly feel less responsible in protecting   
   their workforce from redundancies.    
      
   "While 2024 was the year of investment and optimism, businesses are learning   
   the hard way that replacing people with AI without fully understanding the   
   impact on their workforce can go badly wrong," Orgvue CEO Oliver Shaw noted.    
      
   "Were facing the worst global skills shortage in a generation and dismissing   
   employees without a clear plan for workforce transformation is reckless."    
      
   Looking ahead, nearly half (47%) fear uncontrolled AI usage by employees,    
   with four in five planning to retrain employees to use the tools properly.    
   Two in five (41%) have already increased their learning and development   
   budgets accordingly, with half (51%) introducing internal AI usage policies   
   and 43% working with third-party AI specialists.    
      
   Although it's apparent that human workers are fundamental to businesses, 80%   
   plan to increase AI investments in 2025, yet 27% still lack a clear roadmap.    
      
   Overall, Orgvue's research paints a troubling picture of the state of AI,   
   highlighting a total lack of understanding. "While its encouraging to see   
   investment in AI continue to grow, businesses need a better understanding of   
   how the technology will change their workforce in the coming months and   
   years," Shaw concluded.   
      
   ======================================================================   
   Link to news story:   
   https://www.techradar.com/pro/over-half-of-uk-businesses-who-replaced-workers-   
   with-ai-regret-their-decision   
      
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