Firms are ignoring the needs of people in the adoption of AI, and it will cost them

Companies that fail to adopt a people-focused approach to artificial intelligence risk losing their best AI employees within the next two years, according to new research from Gartner. The analyst firm predicts that by 2027, half of enterprises without a “people-centric strategy” will see top talent leave the organisation. The warning reflects growing concern that many organisations are pursuing AI deployment primarily through cost reduction and automation rather than workforce development. Gartner argues that firms focused solely on replacing jobs with the technology are unlikely to achieve the long-term returns they expect.

According to Gartner, the companies generating the strongest returns from investment are those increasing spending on employee skills, governance and new operational roles rather than reducing headcount. She said organisations that improve return on investment are not those that eliminate the need for people, but those that amplify them.

The findings are based on Gartner research involving large enterprises deploying autonomous AI systems, including agents, robotic process automation and intelligent automation technologies. Gartner found that many organisations implementing autonomous artificial intelligence initiatives had reduced staff numbers, but layoffs alone were not improving return on investment.

The report comes amid wider debate about the workplace impact of AI adoption. Gartner forecasts spending on AI agents will rise sharply over the next two years as organisations continue to expand automation programmes and introduce autonomous systems into workplace processes.

Despite continuing concerns about job displacement, Gartner believes organisations will increasingly move towards hybrid operating models in which human employees work alongside autonomous systems rather than being replaced entirely by the technology.

The issue is likely to become increasingly significant for employers competing for specialist AI skills in an already constrained labour market. Gartner suggests organisations that fail to balance technology investment with workforce development may struggle to retain experienced employees with AI expertise.