Morningstar Inc. points out that many firms use artificial intelligence as a reason to reduce staff and cut costs instead of using the technology to increase efficiency.  

The focus in the market is often on what AI could eliminate, not on how it can create value.  

Analyst Lochlan Halloway noted that companies sometimes cut their workforce because they see AI as a threat.  

An example is Wisetech Global Ltd. , an Australian logistics software company.  

When the firm expected AI to replace certain roles, it lowered its headcount before the technology was fully implemented.  

Instead of moving employees to new tasks, firms may choose to lay them off.  

This approach misses opportunities for productivity gains that AI can bring.  

The lesson is clear: companies should use AI to reassign workers and improve performance, not to justify job cuts.


# AI: A Tool for Growth, Not a Job Cutback

Morningstar Inc. highlights a common misstep in the market: companies often view artificial intelligence as a threat that *eliminates* jobs, rather than a catalyst for efficiency and value creation.

- **The Misconception**  
  Firms focus on *what* AI can replace instead of *how* it can enhance productivity.

- **Analyst Insight**  
  Lochlan Halloway points out that workforce reductions frequently stem from the fear that AI will supersede human roles.

- **Case in Point**  
  *Wisetech Global Ltd.*, an Australian logistics software company, reduced its headcount in anticipation of AI taking over certain functions—before the technology was fully deployed.

- **Missed Opportunity**  
  Instead of reassigning employees to new, AI‑augmented tasks, companies opt for layoffs, squandering potential gains in performance and innovation.

- **The Takeaway**  
  Businesses should leverage AI to *reallocate* talent and boost outcomes, not as a pretext for cutting jobs.



AI Boosts, Not Job Cuts

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