Companies getting a productivity boost from AI aren't turning around and firing workers: EY survey

Core Insights - The rise of AI technology has led to discussions about its impact on the job market, with only 17% of executives reporting job cuts despite productivity gains from AI [1][2][6] - Many companies are choosing to reinvest in their workforce rather than reduce headcount, contradicting the narrative of mass layoffs due to AI [2][6] - The current labor market slowdown has raised concerns about potential AI-driven job losses, although AI is not yet a major factor in these changes according to the Federal Reserve [3][4] Company Actions - Major companies like Salesforce and Lufthansa have announced job cuts attributed to AI, with Salesforce cutting 4,000 customer support jobs and Lufthansa reducing 4,000 administrative positions [4][5] - Duolingo has also ceased using contractors for tasks that AI can perform, indicating a shift in workforce strategy towards automation [5] Labor Market Trends - The EY survey indicates that 34% of companies experiencing productivity benefits from AI are actively hiring individuals with AI expertise, highlighting a skills gap in the labor market [6] - Some companies, like Klarna, have faced challenges with AI transitions, leading to layoffs and subsequent rehiring due to customer service issues [7]