90% of executives say AI hasn't boosted productivity. Some are still cutting jobs
A Fortune analysis suggests that corporate investments in AI are failing to boost productivity as expected. The author argues that AI-driven layoffs are damaging employee morale and undermining the conditions necessary for AI to be effective.
Why it matters
It highlights a potential disconnect between corporate AI spending and actual operational efficiency, suggesting that current workforce management strategies may be counterproductive.
Business leaders and investors face a deepening paradox: Companies are pouring more money into artificial intelligence than ever, but they’re not seeing the gains in productivity that they expect.
Even CEOs are starting to admit this disconnect. One Atlanta Federal Reserve study found that about 90% of executives believe AI has not yet boosted productivity at their companies. Other evidence suggests that the broader increase in productivity seen since 2021 is more likely due to remote work or factors other than AI , like downsizing in sectors such as technology.
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