The reason companies still need employees, Cappelli said, is that “lots of problems have to be chased down, and they’re harder to chase down if they come off of AI… so that’s the payoff, but it’s not cheap, and it took a hell of a long time to do.” Headlines announcing layoffs attributed to AI, he added, deserve skepticism: “If you read what they actually say, they say, ‘We expect that AI will cover this work.’ Hadn’t done it. They’re just hoping. And they’re saying it because that’s what they think investors want to hear.” (Cappelli was talking to Fortune before the Silicon Valley fintech Block, led by CEO Jack Dorsey, announced a whopping 40% layoff, citing AI efficiencies, which is arguably another example of what he mentioned, or a leap forward in the adoption story.)
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