AI Adopted by Businesses To Boost Human Skills, Drive Operational Efficiency Instead of Cutting Jobs: Report
While many firms use AI to cut labour costs, research suggests that employing AI to enhance worker productivity yields better results. Schneider Electric has successfully used AI to improve customer service resolution times and drastically reduce factory waste. However, economists warn that the long-term impact of AI on job displacement remains a significant, unpredictable dilemma for society.
While many corporate leaders currently measure the success of artificial intelligence by the number of jobs eliminated, a growing body of economic research suggests that replacing "human capital" with technology may be a narrow approach to innovation. Experts argue that businesses can achieve superior long-term results by using AI as a tool to enhance employee efficiency rather than as a replacement for human labour.
AI-Driven Efficiency in Customer Service
French energy technology firm Schneider Electric is leading this shift, focusing on how AI can remove the repetitive, tedious tasks that often impede productivity. The company has successfully deployed AI within its call centres, where the technology now assists agents by rapidly searching vast databases to provide accurate answers to customer queries. Meta Layoffs 2026: What H-1B Visa Employees Were Told After Job Cuts Affecting Nearly 8,000 Workers.
- Improved Resolution: In the final quarter of 2025, AI successfully provided the correct response for 75 percent of straightforward customer questions.
- Enhanced Experience: Agents now spend less time on manual data retrieval, allowing them to dedicate more time to complex problem-solving.
- Performance Gains: Academic studies show that AI assistance can help workers resolve 15 percent more problems, with the most significant gains observed in less experienced employees.
Industrial Applications on the Factory Floor
Beyond administrative roles, Schneider Electric is utilising AI to manage complex manufacturing processes at its facility in Le Vaudreuil. By integrating AI-enhanced camera systems and data analysis into its production lines, the company has significantly reduced waste and improved resource management.
- Waste Reduction: AI systems have enabled precise control over chemical washing cycles, resulting in a 73 percent reduction in production waste.
- Resource Efficiency: Real-time quality monitoring has eliminated the need to transport product samples to off-site laboratories, cutting gasoline consumption by 22 percent.
- Process Optimisation: Automated systems now signal precisely when quality standards are met, preventing unnecessary energy and resource expenditure.
The Future of the AI Job Market
While companies like Schneider Electric are using AI to complement their workforce, economists remain divided on the long-term implications for the labour market. In the United States, current tax structures often incentivise capital investment over human labour, whereas strict European labour laws tend to encourage firms to prioritise worker productivity and retention. Tech Layoffs Surge in 2026: 1,14,210 Employees Sacked by 150 Companies Amid AI-Driven Restructuring.
Experts acknowledge that the trajectory of AI development remains highly unpredictable, with the potential to both create and displace jobs. Even within companies successfully using AI to support employees, the dilemma persists as technological capabilities grow. For instance, Schneider Electric has developed new products that can be installed by robots rather than humans, underscoring the ongoing challenge of balancing AI as a tool for empowerment versus a means for full automation.
(The above story first appeared on LatestLY on May 31, 2026 10:08 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).