HR execs share a growing concern about doubling down on AI
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HR execs share a growing concern about doubling down on AI
"Tokens, seats, we have all these enterprise tools we haven't basically budgeted for, and it's expensive. At one point, the investors are going to say, 'Are you gonna produce some profit?' Because it's one thing to grow your top line, but your OPEX is really, really important."
"You can take cost out, or you can give augmentation and multipliers to every person you have. If I can increase everyone's productivity by 30%, we win on both the revenue side and the cost side. Short-term thinking in my view would be to simply reduce headcount."
"We found you need the senior levels of the organization to find the right problem for AI to solve. While it makes sense to have all employees use AI, senior leaders must identify the tools' true ROI."
Companies implementing AI tools face escalating costs from tokens, software seats, and enterprise subscriptions while simultaneously eliminating some employee positions. Executives emphasize that experimentation with AI is necessary for discovering productivity gains, yet investors eventually demand proof of profitability and controlled operating expenses. Rather than automatic layoffs, leaders can use AI to augment existing workforce capabilities, potentially increasing productivity by 30% while reducing costs. Senior leadership must strategically identify which problems AI should solve to ensure genuine return on investment. The challenge lies in balancing the need for exploration with financial accountability and making deliberate choices about workforce strategy.
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