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Executives cutting jobs with AI are half as likely to fund training, Businessolver survey finds

Businessolver's survey of 300 executives finds those using AI mainly to cut headcount are half as likely as peers to invest in AI upskilling. Its AI chief warns this could undercut productivity, though the study ties training only to staff-reported confidence and career progress.

The Board Room · Leadership desk

What happened

  • Technology chiefs are far more worried than finance chiefs that AI will outpace internal systems or workforce skills, at 88% against 63%.
  • Nine in 10 senior executives believe their staff are excited about AI, yet 39% of employees say it has them worried about their future.
  • Almost half of employees, 49%, say they have had no support in learning AI, and 31% worry they are falling behind.
  • Among executives with headcount-focused AI agendas, 30% say being an empathetic organisation gets in the way of their business goals, against 19% of other executives.

Compiled by The Board RoomSomething wrong?How this is made

Why it matters

  • constraint The case for training budgets has to persuade finance chiefs, the executives in this survey least concerned that AI will outrun their workforce's skills.
  • contradiction Plans built on the executive belief that staff are eager are likely to underfund support for a workforce in which roughly four in ten say they are worried.
  • exposure Staff at the fast-growing firms most drawn to AI cuts also get benefits investment 13 points lower, so the people absorbing the most change get the least support.

In my view, the training gap is one part of a narrower AI budget built around removing cost. Executives who do not lead with headcount invest in predictive analytics at more than double the rate of their cost-focused peers [6]. The gap extends to time savings and productivity, at 15 points, and to support for reducing employees' administrative burden, at 14 points [6].

The productivity warning attached to the finding comes from Businessolver's own leadership. The figures are from the 11th edition of its State of Workplace Empathy study, which also polled 1,000 employees [2]. "AI does not create value on its own. People create value when they're enabled with the right set of skills and confidence," said Sony SungChu, the company's chief AI officer [3]. "If leaders reduce capacity without building capability, they could risk undermining the very productivity gains they're chasing," he said [4]. The study's measured return on training is narrower. Adequately trained employees were up to 1.5 times more likely to report stronger career progression, confidence and optimism [8]. SungChu's productivity claim may well hold, but the published findings include neither the percentages behind the "half as likely" ratio nor any measure of output at companies that skipped training [15].

A finance chief's objection is simple to state: training people whose work AI is meant to absorb means paying twice for the same job. That objection holds where cuts are the whole plan. The fast-growing companies in the sample are twice as likely to name headcount reduction as a primary AI motive. They also report twice the incidence of layoffs, alongside more recruiting [11]. At those firms, a training budget would reach the staff they keep and the people they hire [11].

HCAmag called making the case for upskilling "as a commercial imperative, not a welfare measure" the most direct lever HR leaders have [14]. That framing accepts the cost-cutters' premise. So did Jon Shanahan, Businessolver's chief executive. "AI will change jobs and economic pressure will force hard decisions," he said [13].

The order of decisions matters more than the ratio. A budget that cuts roles this quarter and defers training leaves a smaller workforce to learn the tools next quarter. Employees in that workforce already say the support is missing [10].

What to watch

  • Whether Businessolver releases the percentages and subgroup sizes behind its 'half as likely' finding.
  • Company or study data tying training spend to output at firms that cut headcount with AI, the test of SungChu's productivity claim.
  • The next edition of the annual study, and whether the training gap among cost-focused executives narrows or widens.
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