tech
EY's AI leader says cost-cutting represents the 'smallest' ROI on AI for companies
Dan Diasio, EY's global consulting AI leader, said that leaders are leaning into an area with the "smallest level of return."
TL;DR
- Companies are often rewarded by Wall Street for using AI for job cuts and efficiency, but this approach yields the 'smallest level of return'.
- AI can be a tool for cost reduction and increased productivity, especially in areas like software engineering, but its value is limited if solely focused on headcount reduction.
- Leaders need to consider the full cost of AI-enabled workflows, including platforms, governance, human oversight, and maintenance.
- Focusing only on efficiency can lead to generic or brittle outputs without human context.
- AI's larger opportunity is in driving growth by creating new business possibilities, new markets, and new business models.
- Companies that reimagine workflows and redeploy employee time gained through AI are positioning themselves to win.