50% of firms will rehire staff laid off due to AI by 2027, predicts Gartner

Half of the companies that have reduced employee numbers due to AI will rehire staff to carry out similar functions under different job titles by next year, according to Gartner.

The technology research firm has also said that despite widespread speculation that AI will drastically reduce customer service roles, its research indicates that this is not the case.

According to a survey of 321 customer service and support leaders conducted by Gartner in October 2025, only a fifth of them have reduced agent staffing due to AI.

The company’s research found that the number of people working in customer service roles has remained steady, even as they support more customers.

Gartner said that while layoffs due to AI have captured attention in various industries, the reality is more complex.

It attributed recent workforce reductions to broader economic conditions rather than automation alone.

As organisations encounter the limits of AI and rising customer expectations, the firm added that companies will need to reinvest in human talent to sustain service quality and growth.

“AI simply isn’t mature enough to fully replace the expertise, empathy, and judgment that human agents provide,” said Emily Potosky, senior director, research in the Gartner customer service & support practice. “Relying solely on AI right now is premature and could lead to unintended consequences.”

In November last year, research from the Chartered Institute of Personnel and Development (CIPD) found that around one in six UK employers expect AI to shrink their workforce this year.

The professional body for HR, learning and development in the UK said that 62 per cent of these employers believe that clerical, junior managerial, professional or administrative roles are most likely to be lost because of AI.

The CIPD found the risk is highest in large private sector firms, where a quarter expect headcount to fall, compared with 17 per cent in the private sector overall and 20 per cent in the public sector.