AI has cost so many workers their jobs, with companies pushing for more automated systems. But now, companies are backtracking: according to Bloomberg, popular vehicle makers Ford have decided to bring back human workers.
You see, AI promised businesses efficiency and lowered labour expenses, but are all of these worth it when the tool costs them more? Bloomberg reports that Ford has lost billions thanks to AI – all from errors and inaccuracies.
Forbes reports that because of this, the company decided to bring back 350 veteran employees as an attempt to fix these errors. This is interesting considering the CEO, Jim Farley once said that AI would “replace literally half of all white-collar workers in the US”.
And, of course, Ford is not the only company who decided to rehire human workers… Organisations such as IBM and Commonwealth Bank of Australia are also reconsidering their AI hiring decisions.
Why Did Australia’s Commonwealth Bank Bring Workers Back?
When Australia’s Commonwealth Bank replaced more than 40 customer service jobs with an AI voice bot last year, the expectation was that the technology would handle customer calls more efficiently. That is not what happened. According to Quartz, the AI system struggled under the workload and ended up generating more calls instead of reducing them.
The bank later reversed the job cuts and brought customer service workers back. Commonwealth Bank acknowledged that it “did not adequately consider all relevant business considerations” when it announced the redundancies.
The experience has become one of the best known examples of companies discovering that AI cannot always handle busy, unpredictable customer interactions on its own. Allwork reported that the bank restored customer service positions after the AI voice system struggled to cope with call volumes and customer needs.
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Why Is IBM Horing More Entry Level Workers?
IBM found that AI could successfully answer most routine human resources questions, but there were boundaries. According to Quartz, the company’s AI system handled about 94% of incoming requests. The remaining 6% involved situations that required ethical judgement and human decision making.
That experience led IBM to change its hiring strategy. The company announced that it will triple entry level hiring throughout its United States business units in 2026.
Nickle LaMoreaux, IBM’s chief human resources officer, explained the thinking during the Charter AI Summit in New York. She said, “If we don’t continue to invest in entry-level hires, what happens in three-five years? There’s no pipeline; the well simply dries up.”
Allwork reported that IBM now sees AI as well suited to routine requests, although more complicated situations continue to need human judgement. The company said more entry level recruitment will help maintain its future talent pipeline.
What Does This All Mean For Hiring Decisions?
Commonwealth Bank and IBM are among many employers that have gone back and rehired workers after finding that AI could not fully replace people.
According to staffing company Robert Half, nearly one in three United States hiring managers removed a job because of AI and later rehired someone for the same role or a similar one. Quartz also reported that artificial intelligence was the top stated reason for layoffs across all United States industries for the third consecutive month in May. Challenger, Gray & Christmas said AI related job cuts reached 38,579, about 40% of all announced job cuts during the month. Quartz also reported that management specialists have questioned cases where AI has been presented as the reason for layoffs that may have been caused by other business decisions, which they call “AI washing”.
Research from Orgvue found that 39% of business leaders had made redundancies connected to AI adoption. More than half of those leaders later acknowledged that those decisions had been mistakes.
The experiences at Ford, Commonwealth Bank and IBM mean many employers are finding AI works best when people stay involved. Things like customer service, ethical judgement, problem solving and oversight continue to depend on human workers – even as AI handles routine tasks.
