In fact, these job cuts damage employee sentiment toward AI – which is one of the strongest predictors of firm productivity when AI is used. Some of the companies we studied even started to lay off employees before pouring money into AI, as a way to free up capital for future AI investments. Along with fears over losing their jobs due to AI, they cited the lack of appropriate training, few chances to upgrade skills, and poor corporate AI leadership, as well as doubts over whether AI actually improves productivity.