New report presents AI 'not as a jobs-killer but as a strategic enabler'
Despite reports that artificial intelligence is replacing employees in the workforce, a new report has found that just 17% of organisations are actually reducing headcount because of the technology.
EY's US AI Pulse Survey has shown that employers are doing more for the workforce amid AI adoption instead of just letting them go.
More than a third (38%) of employers that have been investing in and benefiting from AI said that they are reinvesting their AI-driven productivity gains into upskilling and reskilling their existing employees.
Another 34% said they are reinvesting it into hiring external talent with the needed AI expertise, while 32% are increasing executive compensation and bonuses.
According to the findings, just 31% are cutting overheads by optimising processes and 17% are reducing headcount.
"The true power of AI is not as a jobs-killer but as a strategic enabler that keeps humans – and their strengths – at the centre and focuses more on growth than on AI replacing jobs," the EY report read.
Layoffs from AI
The findings come amid reports globally that employees are being let go or will be cut off in favour of growing AI adoption in workplaces.
In Australia, the Commonwealth Bank previously axed employees as part of its AI adoption, a move that it has since reversed.
Amazon CEO Andy Jassy also previously revealed that he expects the organisation's workforce to shrink as the company rolls out more generative AI and agents.
Data from AI Resume Builder found that 21% of companies have replaced specific roles with AI in 2025, with 30% more planning similar measures in 2026.
HR and recruiting roles will also be impacted by AI replacements, according to 30% of employers planning the move.
Responsible AI training
But EY's findings underscore that organisations are planning to implement AI ethically.
"Organisations are strengthening their focus on the ethical operation of AI to unlock opportunities it introduces in business operations," the report read.
According to the findings, 60% of senior leaders said their time spent on responsible AI training for employees has increased in the past year, with 60% expecting this time to grow in the year ahead.
Another 66% of organisations will also be focusing on ensuring that AI operates ethically over the next year, while 60% are expecting their focus on AI-related risks to increase.
"Transparency is also gaining ground. Compared to last year, even more leaders say their organisation will increase transparency with customers about AI use in the year ahead (63%, up from 55%)," the report read.
These findings show that employers are starting to recognise the importance of trust and transparency in converting AI investments into long-term value, according to Dan Diasio, EY Global Consulting AI leader.
"Trust and transparency are the ultimate licence to operate as AI diffuses throughout the enterprise," Diasio said in a statement.
"Companies are realising that if they want to turn productivity gains into long-term value, they must prove to their workforce and customers that their systems are not just powerful, but responsible."
