Everywhere you look, companies are talking about AI like itâs the silver bullet that will magically cut their costs in half. And whatâs the first lever they pull? Headcount. Less payroll, more shareholder profit â at least in theory. But letâs be honest: has that game really changed in decades? AI is just the latest excuse.
Whatâs striking to me is how predictable the corporate playbook is. Instead of asking, âHow can AI help my people do better work, release better products, or even create entirely new markets?â the conversation is framed almost entirely around efficiency and reduction. Itâs a race to see who can shrink fastest â not who can grow smartest.
Of course, I get why companies do it. Labor is a big line item, and Wall Street loves a good âcost disciplineâ story. But if the only story you have is one of contraction, you eventually run out of plot. You can only trim so far before thereâs nothing left to cut â and worse, youâve hollowed out the very people who might have driven your next wave of growth.
The Growth Mindset Alternative
Think about it: some of the most valuable companies in history didnât become valuable because they fired the most people. They grew because they created new products, new services, new experiences â and yes, they empowered their teams with the right tools. AI has the potential to be one of those tools.
Imagine a project manager who spends 70% of their week wrangling reports and updates. AI could take that burden down to 10%, freeing them to actually solve problems, talk to customers, or innovate. But if your instinct is to use that freed-up time to eliminate the role instead of expand its impact, youâve completely missed the point.
Now, Iâm not naĂŻve â AI will reshape the workforce. Some jobs will disappear, others will morph, and new ones will emerge. But the companies that thrive wonât be the ones who obsess over reducing headcount. Theyâll be the ones who figure out how to make their people faster, sharper, and more creative with the help of AI.
Beyond the Scissors Mentality
It may sound unfashionable in todayâs climate, but shareholder value doesnât have to come only from squeezing costs. It can just as easily come from growth, from productivity gains, from entirely new revenue streams. AI is powerful enough to deliver all of those. The question is whether leadership has the courage â and frankly, the imagination â to aim higher than âfewer FTEs.â
Because if the best you can do with a once-in-a-generation technology is use it as a fancy pair of scissors⌠then maybe itâs not the workforce thatâs redundant.