Companies rushed in on AI. Now some are pulling back
Companies that rushed to adopt AI are now pulling back due to errors, costs and meager productivity gains.Summary
After rushing to adopt fast-changing AI tools, many companies are now scaling back. Meta reduced plans to replace staff with AI, Microsoft executives lament AI-generated low-quality work, and Walmart workers struggle with flawed AI scheduling. Firms report errors, security risks, higher costs and little productivity improvement; 90% of executives see no productivity gains. Companies like Microsoft, McKinsey, Palantir and Nvidia are restricting internal AI use, rehiring experienced workers, and focusing on sustained, role-specific training. Legal cases, such as a $61.5m verdict against 3M, highlight the risks of overreliance on AI. Experts say management optimism has not translated into better performance, and layoffs attributed to AI have not boosted share prices.
(Source：the Guardian)