AI gains can be unlocked without cutting jobs, Morningstar says


With earnings season and corporate guidance under closer scrutiny, firms will be now focusing on how AI may impact balance sheets. — Photo by DFY® 디에프와이 on Unsplash

Companies are increasingly using artificial intelligence as justification for cutting headcount and trimming costs, rather than using the technology to boost productivity by redeploying workers, according to Morningstar Inc.

"The market, it seems, is squarely focused on what AI might destroy, and not the value it might create,” analyst Lochlan Halloway wrote in a note Thursday. Firms, such as Australian logistics software company Wisetech Global Ltd, have reacted by slashing their workforce when such redundancies have been a pattern before AI, he added.

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