Companies are rehiring laid-off workers as AI fails to meet expectations

New data reveals that companies across the US and globally are rehiring employees they once laid off as artificial intelligence systems fail to deliver on their promises. Analytics firm Visier reported that around 5.3% of laid-off workers have been rehired by their former employers — a trend that is steadily rising amid growing doubts about AI efficiency.

Source Techspot

Many firms have discovered that automation cannot fully replace human judgment or flexibility. AI-powered tools often handle only partial tasks, leaving companies without the expertise needed to manage complex operations. Rising infrastructure costs and implementation challenges have led executives to reevaluate their automation strategies.

Experts from MIT found that 95% of organizations have yet to see measurable returns from their AI investments. Implementation expenses for hardware, data systems, and security have exceeded projections, forcing firms to prioritize skilled human labor over expensive automation. The “AI revolution,” it seems, is now being quietly revised back toward people.