Don't Use AI's Productivity Gains to Shrink Your Team
Heller Search Associates, Wednesday, September 16th, 2026
Organizations should reinvest AI productivity gains into growth rather than cutting staff.
When AI makes teams more productive, using those gains to reduce headcount is strategically shortsighted.
Drawing from manufacturing lean principles, author Niel Nickolaisen argues that freed-up capacity should fund new initiatives such as deeper customer relationships, innovative products, or proactive strategies, rather than cost-cutting.
Success requires making capacity visible, allocating it purposefully before deployment, training teams to identify opportunities, and protecting gains from budget recovery pressure.