A Growing Trend: AI is a Tool - Not a Replacement

by Danny Summers

As a follow-up to last week's message, there is growing evidence in the media today that large companies that cut their workforce and replaced workers with AI-based systems are starting to put things in REVERSE. Here's just one news report I have seen over the last few weeks...

AI Layoffs Are Backfiring and Half of Companies Will Start Rehiring
Organizations are starting to come to terms with the limits of AI.

It's an Inc Magazine article. The author notes that most businesses today say they use some form of AI in their operations. It then mentions firms that simultaneously downsize their workforce.

The author illustrates how the implementation of AI has its benefits in assisting the workforce and helping decision-making become more efficient, but especially when it comes to interacting with customers, it is failing. Customer service is slipping at these firms. Companies that shifted too far are beginning to shift back.

Here's another article in Forbes:

Companies Fired Workers For AI. Now They Want Them Back

In this story, it says, "Time (magazine) reported this week on how some companies are beginning to follow a predictable model when it comes to rehiring workers after laying off those same employees due to their jobs being taken over by artificial intelligence (AI). The company first announces it will use AI to do a job. The staff is being downsized. Then, six to twelve months pass, and the AI has successfully managed 60% of the job duties but is unable to complete the remaining 40%, so the company rehires the original staff members. This gap in performance is real."

Here's the key portion of this message:

"The central error in replacing people with AI is thinking AI would replace people, rather than replace tasks. Customer service representatives are responsible for much more than simply answering an inquiry. They can tell if someone has a serious issue or if they’re simply mad at the world. When it comes to whether or not a customer qualifies for a refund, they have to use their own judgment. They will be able to recall how many times a high-value client has been placed on-hold and will usually take the time to escalate the issue to a supervisor. This is where AI fails. It is good at reading answers (the answering portion). However, it cannot understand when something should require human judgment. It cannot retain memory of past interactions or establish relationships with customers."

In customer-facing functions, the Power of Human Connections is real. Each of us, as we attempt to connect with services we use, is seeing this too. When calling almost any of our major personal vendors today, such as cell phone, utilities, mortgage, credit card, and many other service/product providers, we are most likely speaking to an AI Bot, not a real person.

Here's another recent article in Fox News:

AI layoffs may be backfiring on companies
New study says cutting jobs for AI may free up cash, but it may fail to deliver the payoff companies expect

All three articles I mention here quote a recent report by a business research firm, Gartner, so there are similar threads of the same message in each.

If you have made any of these types of calls recently as a customer, you have likely experienced this for yourself. Much of the time, it has not been a happy experience. For simply answering phones, routing calls, and maybe making a reservation, it works fine.

But to really connect with the customer, hear opportunities, or understand the best way to keep the customer happy, real Human Connections are needed.

This trend, as reported (and experienced by customers), is pointing us to a word of caution...

AI is not a replacement for people in customer-facing functions.

The INC article above says: "The study found companies with the highest gains were those using AI as a form of people amplification, implementing the technology to make workers more productive rather than outright replacing them."

We should be thinking about using AI to help our teams become smarter, more informed, and better able to make decisions. This is exactly what Rory Tyer of South Pleasantburg Nursery shared about their work last month on GROUPtalk LIVE.

This is another example of the Power of Human Connections!

Here are links to the articles mentioned above if you want to explore the subject more on your own. Inc HERE, Forbes HERE. And Fox News HERE.

Or.. just ask your own AI assistant to give you a report on how best AI can replace people and see what it says!

Have a great week!

Danny Summers
[email protected]
Tel: 678-909-7770
Cell: 678-761-7145

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