Companies cutting jobs while adopting artificial intelligence (AI) may not actually be improving profits, according to new research from technology research and consulting firm Gartner.
The study found that around 80% of companies testing or using autonomous business technologies reported workforce reductions. However, businesses that cut jobs saw nearly the same financial results as companies that kept their employees, suggesting layoffs alone do not guarantee better returns on investment (ROI).
Gartner surveyed 350 global business executives in late 2025. The companies surveyed had at least $1 billion in annual revenue and were already using or testing technologies such as AI agents, automation tools, robotic process automation (RPA), digital twins, and tokenized assets.
According to Gartner, autonomous business systems are meant to help people and machines work together more efficiently, not completely replace human workers. The company said businesses seeing better ROI are the ones investing in employee skills, new roles, and smarter workflows instead of relying mainly on layoffs.
“Many CEOs turn to layoffs to demonstrate quick AI returns; however, this disposition is misplaced,” said Helen Poitevin, distinguished VP analyst at Gartner. “Workforce reductions may create budget room, but they do not create return. Organizations that improve ROI are not those that eliminate the need for people, but those that amplify them by aggressively investing more in skills, roles and operating models that allow humans to guide and scale autonomous systems.”
Businesses worldwide are increasing spending on AI and automation to improve productivity and reduce costs. Gartner predicts spending on AI agent software will grow from $86.4 billion in 2025 to $206.5 billion in 2026 and $376.3 billion in 2027.
Despite fears that AI could replace workers, Gartner believes autonomous business will create more jobs than it removes between 2028 and 2029. The company said future jobs will focus on work that still requires human judgment, trust, and decision-making.
“Long term, autonomous business will create more work for humans, not less,” said Poitevin. “Lasting structural factors such as demographic decline and high-stakes, trust-dependent consumer moments will ensure human talent remains central to running, governing and scaling autonomous business.”