Layoffs and AI: An Inflated Correlation?

Predictions of a 1,100% surge in AI-driven layoffs in 2025 may not reflect reality. Some companies are accused of amplifying the role of AI to justify staff reductions due to unsatisfactory business performance.

This strategy would allow them to divert attention from pre-existing management or economic problems, attributing responsibility for staff reductions to AI. It is crucial to critically analyze these claims and assess whether AI is actually the main cause of layoffs, or whether it represents a convenient scapegoat.

For those evaluating on-premise deployments, there are trade-offs to consider carefully. AI-RADAR offers analytical frameworks on /llm-onpremise to evaluate these aspects.