Several companies that replaced workers with artificial intelligence are now rehiring human staff, according to a report by Information Age, after the expected cost savings failed to materialise.

The report says businesses rushed to cut jobs and deploy AI tools, but ran into problems with accuracy, customer complaints and the limits of automation in complex tasks.

In many cases, firms found that AI systems needed constant human supervision, wiping out the savings they had hoped for. Some have quietly brought back experienced employees to fix errors and handle customers.

The trend marks a shift in the debate over AI and jobs. After two years of headlines about AI replacing workers, employers are rediscovering the value of human judgment.

Experts quoted in the report say the lesson is not that AI is useless, but that it works best as a tool that assists workers rather than a wholesale replacement for them.