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AI Could Not Replace Humans: Ford, IBM, CBA Reverse Hiring Decisions

A survey by staffing firm Robert Half found that 32% of hiring managers in the US said they had eliminated a job mainly because of AI but later rehired someone for the same or a similar role.

AI Could Not Replace Humans: Ford, IBM, CBA Reverse Hiring Decisions
Hiring managers in the US said they had eliminated a job mainly because of AI.
NDTV
  • Ford has decided to re-employ engineers to improve quality checks and solve problems that AI-powered systems could not fully address.
  • Several businesses that previously prioritised AI-driven operations have started reversing its layoffs after facing challenges with AI.
  • Commonwealth Bank of Australia (CBA) changed its decision after AI-powered voice bots failed to handle customer service calls properly.

Automaker Ford is bringing back hundreds of experienced human engineers after automated systems reportedly failed to handle certain vehicle quality issues. The company has decided to re-employ engineers to improve quality checks and solve problems that AI-powered systems could not fully address.

"Artificial intelligence is a fantastic tool, but it's only as good as the information you use to train it," Charles Poon, Ford's vice president of vehicle hardware engineering, said.

Ford is not the only company shifting its approach. Several businesses that previously prioritised AI-driven operations have started reversing its layoffs after facing challenges with AI.

Commonwealth Bank of Australia (CBA) changed its decision after AI-powered voice bots failed to handle customer service calls properly. 

Last year, CBA announced that it would cut 45 customer service jobs following the introduction of an AI-powered voice bot. The bank said the AI system reduced the number of customer calls, so fewer employees were needed.

Software company IBM has also altered its hiring plans. After initially claiming that AI would replace thousands of back-office jobs, the company was now hiring more people for roles needing human skills. 

It is hiring more entry-level employees after realising that AI could not handle many complex HR (human resources) tasks. It struggled with work that needed human understanding, decision-making and dealing with employees.

The AI system was able to answer about 94% of routine employee requests, such as leave-related questions, company policies and basic HR information. However, it struggled with the remaining 6% of cases, which involved more complicated issues.

The company announced plans to triple its entry-level hiring in the US across all business units in 2026.

"If we don't continue to invest in entry-level hires, what happens in three to five years? There's no pipeline; the well simply dries up," says IBM's Chief Human Resources Officer, Nickle Lamoreaux.

A survey by staffing firm Robert Half, shared with CNBC, found that 32% of hiring managers in the US said they had eliminated a job mainly because of AI but later rehired someone for the same or a similar role. This means many companies found that AI alone could not perform all the tasks needed for the job.

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