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A.I. Doesn’t Have to Mean Layoffs

Schneider Electric, a French multinational energy technology company, is using artificial intelligence to make its 160,000 workers more productive rather than replacing them. The company identified repetitive and tedious tasks where employees waste time, deploying AI to eliminate that work instead of cutting jobs. This approach challenges the prevailing corporate trend of using AI to justify mass layoffs, which economists say reflects a narrow understanding of the technology's potential.

read1 min publishedMay 29, 2026

A French multinational, Schneider Electric, decided to use artificial intelligence in manufacturing to make workers more productive, rather than to replace them. Here’s how that’s going.

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For many chief executives, success in adopting artificial intelligence is measured by the number of jobs they can eliminate. In just the past few weeks, companies have announced tens of thousands of layoffs they attributed to A.I., a wave that one global bank boss undiplomatically [described](https://www.bloomberg.com/news/videos/2026-05-19/stanchart-ceo-ai-to-replace-lower-value-human-capital-video) as replacing “lower-value human capital” with technology.

But such views reflect “a very narrow understanding” of A.I.’s potential, said Erik Brynjolfsson, who directs the Digital Economy Lab at Stanford University. “A lot of people are under the mistaken idea that the only way that you get productivity from A.I. is by removing labor costs.”

Mr. Brynjolfsson is one of a group of economists who argue that businesses can reap bigger gains by using artificial intelligence to make workers more productive rather than replace them.

It’s a message that Schneider Electric, a global energy technology company based in France, has taken to heart. Schneider, which has a work force of nearly 160,000 worldwide, is embracing artificial intelligence across the company.

It started by identifying “where our people are either losing time doing repetitive tasks, doing tedious tasks, doing things which fundamentally are not the right ones to do,” said Philippe Rambach, the company’s chief artificial intelligence officer.

In other words, the work that gets in the way of work.

Using A.I. in Call Centers #

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