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All issuesVolume 341, Issue 3IT NewsHR

Why Replacing Staff With AI Backfires - and 5 Ways Smart Leaders Generate Real Value Instead

ZDNET, Thursday, August 20th, 2026

Leaders who cut headcount for AI destroy knowledge; the value comes from redesigning work instead.

Business leaders interviewed argue AI has real limits: generative AI can do paralegal research, but someone still has to be the lawyer in court. Ordnance Survey's internal AI champion describes deploying agentic AI to give staff fast access to statistics, with employees themselves defining where AI does and does not belong.

Harvey Nash's Anand points to firms compressing valuation, software delivery and regulatory documentation cycles. His five recommendations: do not default to layoffs, redesign work rather than just reduce it, measure value beyond cost, invest in reskilling, and treat AI as a platform for growth.

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