Four Considerations for Evolving Work with AI

Four Considerations for Evolving Work with AI
June 9, 2026 5 mins

Four Considerations for Evolving Work with AI

Four Considerations for Evolving Work with AI

Many companies face pressure to shrink workforces, but people‑first strategies can realize AI’s value while preserving strength and talent. Explore workforce design that empowers employees and unlocks the full value of AI.

Key Takeaways
  1. Integrating AI investments with workforce planning is essential to maximize ROI and minimize talent disruption.
  2. Cost-cutting measures like layoffs carry long-term risks that may not deliver lasting value.
  3. Leaders should focus on four practical steps, including identifying where AI will change work, deploying it intentionally, reskilling and redeploying talent, and aligning hiring to future needs.

Design AI and Workforce Together, Or Pay Twice

Employers who separately invest in technology and workforce risk doubling their costs, first for new technology, then for the talent they fail to prepare, retain or redeploy. The real risk is not moving too slowly on workforce reductions; it’s treating work and workforce redesign as an afterthought. Organizations need a single operating model where AI investment, work redesign and talent transitions are aligned.

The Pressure to Cut Jobs Sooner Rather Than Later

Even with strong revenues, organizations are rethinking workforce size and cost structures. Some are considering redirecting investment toward AI by adjusting headcount, retirement programs or total rewards. These decisions point to a broader structural shift as AI, skills demand and demographics reshape work.

Four Immediate Actions to Align AI and Workforce Strategy

Instead of defaulting to workforce reductions, leaders should focus on a set of practical, near-term actions:

  1. Identify where AI will meaningfully change work, not just broadly where it could apply
  2. Focus AI investment in those high impact areas and define how roles and tasks will shift
  3. Build pathways to reskill, redeploy and move talent into future roles before reducing headcount
  4. Adjust hiring, M&A strategy and workforce plans based on this future state, not legacy structures

These actions are not sequential. Employers should focus on the areas most relevant to their business while aligning to a broader, longer-term workforce strategy.

When companies do this well, they:

  • Avoid unnecessary job losses and rehiring costs
  • Get more value from their AI investments faster
  • Protect institutional knowledge
  • Lower long-term operating costs
  • Build a workforce proficient in the technology they’re paying for
  • Maximize value from integrating “best-of-breed” operating models and systems from acquired companies

Evaluating Workforce Actions in the Current AI Environment

Workforce action Pros Cons Thinking deeper
Integrated AI and Talent Strategy
(The emerging path) 		• Builds a scalable, resilient model for AI‑enabled work
• Preserves institutional knowledge while increasing productivity
• Differentiates beyond pure technology spend 		• Slower and less visible cost impact
• Requires sustained cross‑functional commitment (CEO, CHRO, CIO, CFO) 		Designing AI and talent together shifts the focus from cost cutting to value creation. By investing in AI literacy, redeploying mid‑ and late‑career talent, and planning transitions over three to five years, organizations increase the ROI of AI while reducing long‑term workforce risk.
Shifting Workforce Investment to Fund AI
(Pure efficiency play) 		• Immediate reduction in operating expense and headcount
• Signals cost discipline to investors 		• Loss of potentially re‑deployable talent
• Erodes culture and trust
• Increases risk to reputation, innovation and execution 		Layoffs are a one‑time cost lever. Most organizations are not seeing enough sustained productivity upside to justify repeated reductions. Without a clearly defined AI and work‑redesign strategy, this approach often creates long‑term capability gaps that outweigh short‑term savings.
Voluntary Retirement / Buyouts
(Workforce reshaping) 		• Smoother demographic reset
• Gives employees agency vs. involuntary cuts (better optics)
• Medium‑term cost relief 		• Loss of deep domain expertise
• Reduced mentorship and continuity
• High risk if AI productivity gains fail to materialize 		These programs are rarely well‑targeted and often don’t result in the exit of the roles or performers organizations intended. In practice, they are frequently followed by additional layoffs, compounding disruption rather than preventing it.
Quiet Cuts to People Programs
(Benefits, perks, L&D, wellbeing) 		• Incremental, near‑term savings
• Low‑visibility cost control 		• Gradual erosion of engagement and loyalty
• Undermines AI readiness and learning capacity 		Small “indignities” accumulate over time and damage trust, without freeing up enough capital to materially fund AI investment. The Covid‑19 pandemic taught organizations there are real ceilings to productivity. Cutting support programs without redesigning work risks hitting those limits again.

Set a Workforce Strategy for the Next Three to Five Years

Beyond immediate actions, organizations need a clear multi-year view of how AI and workforce strategy will evolve together. This means defining how work will change, how talent will transition and how skills will be built over time.

Companies that succeed will not frame AI as a short-term cost exercise, but as a long-term shift toward higher productivity, stronger capabilities and a more adaptable workforce.

Contact Us:

Aaron Chaum
US HCS Rewards Solutions Partner I
[email protected]

Katie Hill
US HCS Rewards Solutions Associate Partner I
[email protected]

Serafina Miller
H&B Leader I
[email protected]

William Self
US HCS Rewards Solutions Partner II
[email protected]

General Disclaimer

This document is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this document, Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the document or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this document. This document has been compiled using information available to us up to its date of publication and is subject to any qualifications made in the document.

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