Gartner predicts that by 2029, 33% of employees laid off due to AI will need to be rehired at higher costs. As the global workforce stagnates or declines, competition for skilled talent will intensify, driving up recruitment and training expenses for organizations that initially cut their teams.
The finding underscores a broader strategic risk: by 2027, 75% of companies prioritizing workforce replacement through AI will be outperformed by competitors who use the technology to modernize and expand their existing staff's capabilities instead. Organizations that view AI as a tool for augmentation rather than elimination appear positioned for stronger competitive outcomes, according to Gartner's analysis.