The total cost savings for businesses from all the various aspects of AI are projected to be more than $6.6 trillion globally by 2030. The single largest expense for most businesses tends to be labor costs, so it’s not unreasonable to expect that a disproportionate amount of those savings will be tallied in human job cuts.

It’s reported that more than 150,000 tech jobs were eliminated in 2024, while another 6,003 tech jobs were cut in January 2025 – with another 3,600 from Facebook’s parent company Meta being axed starting this week.

However, at least one AI expert says companies that race to replace human headcount with AI adaptations and algorithms are likely to lose in the long run.

Using AI Solely As A Layoff Lever Is Biggest Mistake

Zac Engler is a former Apple manager and HR executive, with more than two decades in the tech space, turned founder and CEO of AI training and consultancy firm Bodhi AI. During a Zoom call, he explained a three-way layering of AI workforce integration that he has dubbed the “AI Work Trifurcation,” which categorizes work into distinct types:

1. AI-Only Tasks: Fully automated processes where AI handles everything
2. Hybrid Tasks: AI supports a lot, but humans validate or refine the output
3. Human-Only Tasks: Human skills are critical and can’t be replaced by AI

Engler said the biggest mistake executives make is thinking AI is just a labor-cutting tool when it should be a strategic advantage.

“There’s an efficiency trap that a lot of executives tend to fall into when they look at the productivity gains that AI can bring their organizations. I love CFOs, don’t get me wrong, but when they see the amount of potential productivity efficiencies, they can’t help but cut the biggest cost to the organization – labor,” he said.

“What the ‘Trifurcation model’ is trying to do is help them realize where they could reposition the organization for gaining a market advantage, rather than simply cutting costs for maybe a one- or two-quarter boost,” added Engler.

AI Work Trifurcation Is Division Of Labor 2.0

Engler went on to say that leaders who understand this new approach regarding division of labor – and how to use AI within it – are more likely to dominate their industries.

“The model asks a leader to take the concept of analyzing all roles and determining what are the AI-driven tasks that could be fully automated. It’s then necessary to identify hybrid tasks where perhaps an AI could handle 80% of the work and then having a human in that loop to validate it. And then lastly, understanding what are the human-only functions that they want traditional employees to focus on. If leaders can figure out how this ‘Trifurcation model’ can support their workflows, they’ll be unstoppable.”

AI Deployment Must Be Multimodal To Be Successful

He then stated that the money is in the model, and the model must be multimodal.

“Instead of thinking about AI as a tool to free up 20% of their time by automating busywork, flip it on its head. Figure out how AI can handle 20% of the strategic work that allows the company to drive 80% of the value of the organization,” Engler explained.

“Even if you’re that white-glove hair salon that’s going to provide the world’s greatest haircuts – that doesn’t prevent you from using AI for your marketing, your strategic outreach or any other aspect of your business. At the end of the day, we are looking at the world’s most intelligent entity ever created—how do we not leverage that?” he concluded.

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