By Kashmira Konduparty
A growing number of employers that cut jobs in favor of artificial intelligence are reversing course, rehiring workers after discovering that AI systems could not fully replace human expertise, according to a CNBC report published Tuesday.
The shift comes as businesses across industries continue investing heavily in AI while reassessing how the technology fits into day-to-day operations. Rather than replacing employees outright, many companies are finding that AI works best as a tool to assist workers instead of taking over entire roles.
Among the companies changing direction is Ford Motor, which has rehired and promoted more than 350 experienced engineers after automated quality-control systems failed to capture the expertise of veteran employees. Charles Poon, Ford’s vice president of vehicle hardware engineering, said AI is “a fantastic tool,” but added that its effectiveness depends on the quality of the data used to train it.
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Australia’s Commonwealth Bank also reversed an AI-driven workforce reduction after replacing more than 40 customer service employees with AI-powered voice bots. The automated system struggled to handle customer inquiries, leading to increased call volumes and prompting the bank to restore staffing levels.
IBM has similarly shifted its hiring strategy. After using AI to automate portions of its human resources operations, the company said it plans to triple entry-level hiring in the United States by 2026. While AI successfully handled most routine HR requests, executives said human employees remained essential for tasks involving judgment, ethics and complex decision-making.
The trend is reflected in recent surveys of employers. Research by workplace planning firm Orgvue found that 39% of business leaders had laid off employees because of AI, but 55% later concluded the decision had been a mistake. Separately, staffing firm Robert Half reported that 32% of U.S. hiring managers who eliminated a position primarily because of AI later rehired for the same or a similar role.
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The findings come as companies continue pouring billions of dollars into AI infrastructure while restructuring their workforces. Several major technology firms, including Oracle, Meta and Intuit, have announced AI-related layoffs this year as they redirect resources toward artificial intelligence initiatives.
Despite those investments, the latest reversals suggest many employers are recalibrating expectations for AI. Rather than eliminating jobs altogether, companies are increasingly viewing the technology as a complement to human workers, particularly in roles requiring experience, creativity, customer interaction and complex problem-solving.