The rise of AI has sparked concerns about job losses. However, EY’s survey shows only 17% of US companies that benefited from AI cut jobs. Fed Chair Powell acknowledges AI’s influence on layoffs but says it’s not the main driver. Some companies like Salesforce and Lufthansa have cut jobs due to AI efficiency.

EY’s survey reveals that 34% of companies are hiring AI experts. Klarna’s AI transition led to layoffs, later rehiring due to customer complaints. 96% of respondents saw productivity gains from AI, with 56% reporting financial improvements. Companies are reinvesting gains in new AI capabilities and cybersecurity.

Some companies risk commoditizing themselves by focusing solely on AI cost-cutting. EY found that 47% reinvest gains in businesses, 42% develop new AI capabilities, and 41% bolster cybersecurity. Companies must decide if AI is about doing the same with less or significantly more with the same resources.

Read more at Yahoo Finance: Companies getting a productivity boost from AI aren’t turning around and firing workers: EY survey