The landscape of Artificial Intelligence has hit a pivotal accountability phase in early 2026. According to the latest Morningstar and Mercer Global Talent Trends report, nearly 71% of CIOs are now under pressure to prove the tangible value of their AI investments by mid-year or risk significant budget freezes.
However, contrary to the fear of a job apocalypse, leading analysts suggest that AI gains can be fully unlocked through work redesign rather than simple headcount reduction.
With corporate AI spending projected to hit $500 billion this year, the focus has shifted from experimental bots to integrated systems that amplify human capability, ensuring that workforce automation remains a tool for growth rather than a replacement for talent.
How can Companies Achieve AI Gains without Layoffs?
The Morningstar perspective emphasizes that the most successful firms are those treating AI as a multiplier. Instead of viewing employees as costs to be cut, these organizations are reinvesting in reskilling to fill the growing talent gap.
- Strategic Redeployment: Rather than firing, companies like those in the real estate and healthcare sectors are seeing a 1% to 2% net gain in jobs by moving workers from routine data entry to AI-oversight roles.
- The Skills-Powered Model: Investors are 77% more likely to back companies that prioritize employee AI education.
- Human-Centric Hybrid Teams: Data shows that productivity increases by an average of 11.5% when AI handles high-volume processing while humans focus on contextual judgment and emotional intelligence.
| Metric | Impact of Human-AI Collaboration |
| Productivity Boost | 11.5% Average Net Increase |
| Investor Confidence | 83% higher for Resilient Leaders. |
| Employee Trade-off | 63% of workers would swap a 10% raise for AI training |
Why are some Tech Giants still Cutting Jobs for AI?
While the Morningstar report offers a roadmap for retention, the restructuring trend persists among major players.
This week, eBay announced 800 job cuts (6% of its workforce) to realign with AI priorities, following similar moves by Block, which is aiming for a “leaner” sub-6,000 employee count.
The reason? Jack Dorsey, CEO of Block, noted that intelligence tools have fundamentally changed the cost of running a company. For these firms, the goal is to reach a human-level performance by May 2026 with a significantly smaller, more specialized team.
This creates a divide in the market: those who use AI to scale existing talent versus those who use it to shrink the operational footprint.
The 2026 AI landscape proves that layoffs are not an inevitable byproduct of progress. Morningstar says that the companies that will come out on top in this cycle will be the ones that learn how to use AI without losing their workers. To be successful now, you need to show ROI through smarter workflows, not just lower payroll.