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Companies reinvest AI productivity gains into more automation

By CIO Dive by By CIO Dive
December 23, 2025
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Dive Brief:

  • AI-driven productivity gains are being used to further expand AI capabilities, research and talent development, according to EY’s latest U.S. AI Pulse Survey. The company surveyed 500 U.S.-employed decision-makers across industries.
  • Most respondents said they are seeing productivity gains as a result of AI, with nearly half channeling this into enhancing AI capabilities. Crucially, only 17% said it has led to job loss.
  • To get ahead of competitors, businesses “must invest in the humans who provide the creative spark and judgment that the models just can’t replace,” Dan Diasio, EY global consulting AI leader, told CIO Dive.

Dive Insight:

Despite persistent fears over AI-fueled job losses, most companies are using productivity gains to expand their operations, bringing AI tools to wider swaths of the workforce.

“Broadly, organizations are pivoting away from headcount-reduction and toward outcomes that elevate the customer experience,” Diasio said.

“When we look at the numbers, the commitment to the workforce is very strong,” he added. “For every one company that is cutting headcount, we see more companies taking their AI gains and pouring them back into upskilling their talent.”

The report also highlighted a correlation between investment scale and success. 

Respondents at organizations investing $10 million or more in AI report significant productivity gains (71%), compared with those investing smaller amounts (52%). This trend, Diasio said, showcases the most advanced adopters of AI are leaning into the technology as a catalyst for value creation, “rather than as a cost-cutter.”

As AI adoption expands, ethical and transparent operations have emerged as being key for broader adoption. Respondents showed increased focus on responsible AI practices, with 68% saying their organization’s focus on ensuring AI behaves ethically will rise over the next year.

“We are seeing a maturity curve where governance is no longer an afterthought, but a prerequisite for scale,” Diasio said. “The next hurdle isn’t just policy, but ensuring that as AI’s footprint expands, the transparency customers demand is maintained.”



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By CIO Dive

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