Artificial intelligence (AI) is moving from boardroom buzzword to real-world practice, and the impact on companies that can’t keep up is no longer theoretical. AI has the potential to transform businesses as part of a meaningful restructuring, and the best path forward is to adopt and adapt, rather than take on the significant legal risks of mass layoffs and worsening external controls.
The numbers tell a grim story. In February 2026, Australian logistics software company WiseTech announced plans to cut approximately 2,000 jobs and nearly a third of its global workforce as part of a two-year AI-powered restructuring program. WiseTech is not alone. telstra eliminated more than 2,350 roles during 2025, reducing underlying labor costs by 9% and saving $181 million. Meanwhile, it published 380 internal AI use cases and reported that 86% of consumer service interactions are completed through digital self-service channels. atlassian 1,600 roles reduced, block (Afterpay owner) cut nearly half of its workforce due to AI. Even further away, bloomberg We estimate that banks around the world will eliminate up to 200,000 jobs over the next three to five years due to AI.
The dangers of moving too fast and too hard(ly)
As the Commonwealth Bank discovered, speed without rigor comes with its own risks.
CBA announces 45 job cuts in July 2025 After deploying an AI-powered voicebot to handle customer service tasks, it claimed it reduced its call volume by around 2,000 calls per week. The affected workers are reveal later They themselves were involved in training chatbots to replace them.
By August 2025CBA has now fully retracted, saying the decision was a mistake and apologizing to affected employees. In fact, after the bot was introduced, call volume increased, causing management to scramble to request overtime or send team leaders to answer the calls.
What should companies do with AI?
The overall pessimism is overstated. The more likely outcome for many companies is disruption rather than extinction. The companies best able to survive are those that act now rather than wait, viewing AI adoption as a strategic opportunity and proactively reshaping their operations.
Actions without appropriate legal, ethical and governance structures expose companies to real risks, from employee complaints to non-consultations, reputational damage and regulatory action, all of which impact financial returns. Carefully incorporating AI into your restructuring strategy is a healthier approach than rushing into mass layoffs and potential external management scenarios.
The evaluation should cover three aspects:
-
Operation: A thorough audit of your workforce structure is essential to identify which roles are most susceptible to AI augmentation or replacement. If roles are at risk, focus should shift to retraining and redeploying staff to higher-value roles that cannot be replicated by AI. This applies not just to good employment practices, but also to sound commercial strategy.
-
Strategic: Executive teams and boards need to take a hard look at which revenue streams are exposed to AI-enhanced competition and what can be achieved with thoughtful AI implementation. A clear AI strategy at board level that can be consistently explained to shareholders, lenders and auditors is a commercial necessity.
-
Finance: If AI disruption has a material impact on business performance, we strongly recommend early and transparent engagement with stakeholders. Positive dialogue is almost always better for business than making the situation worse. Financial models should be stress tested against realistic scenarios in which AI-driven competitors lower prices or gain meaningful market share.
We work with clients across several key sectors of the national and global economy impacted by AI, from retail and consumer to energy and utilities, financial services and more. AI is already impacting every business. In some sectors, the impact will be even stronger. Proactive rebuilding is always preferable to reactive damage control.
