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AI Adoption Is Funding Itself Through Labor Cuts, Not Productivity Gains
The deployment of artificial intelligence across the business sector is introducing structural margin pressure rather than delivering the promised productivity dividend. Rather than self-funding through measurable efficiency gains, AI investments are currently being financed through compensation cuts, organizational tightening, and heightened performance expectations, as evidenced by data from ActivTrak, Gallup, Novoresume, and ResumeBuilder. This shift positions AI less as a driver of output and more as a cost-cutting measure embedded in software spending.
Concrete developments show that…
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