Almost every company I come across in Oman (and worldwide) is racing to adopt artificial intelligence (AI) in one way or another. Some because AI is the hottest trend today and they don’t want to be left out, while others due to the benefits it promises, ie, taking over routine tasks, cutting costs and delivering flawless efficiency.
On paper and in various research on the subject, “replacing humans with AI” is the future and exciting (or fearful), yet in reality, a very different result is the unfortunate outcome (especially with those that jump on the bandwagon without being careful). My article today will shed light on why replacing humans with AI does not really work.
Seamless automation (of repetitive and routine tasks), cost cutting by ultimately reducing headcounts (employees, as in humans) and efficiently/smoothly running business operations (process enhancement using technology) are a few of the advantages many organisations strive for in an AI adoption strategy.
Nevertheless, unexpected failures, frustrated customers and expensive reversals have been the outcome of many of the attempts. The reason is clearly due to the fact that work is not just data and rules but also judgement, emotion, culture, etc, to name a few of the aspects that AI cannot overcome and falls short on, unfortunately.
Many companies that rushed to eliminate human roles and install AI systems instead soon discovered the limits of depending solely on machines. Their stories have become cautionary examples for the business world. One of the most striking cases is the Swedish fintech giant Klarna, which made headlines after laying off around 700 customer-service employees and replacing much of the function with AI systems. Initial excitement quickly turned into a wave of complaints.
The AI responded well to simple queries, but it struggled with emotional or complicated issues such as fraud cases or sensitive customer disputes. Many users reported feeling misunderstood, stuck in loops, or unable to get the clarity they needed. The company eventually admitted the misstep and quietly began rehiring human staff to restore the service quality that customers expected. The cost savings they hoped for were overshadowed by the damage to customer experience.
Another example is with the technology heavyweight IBM, where it attempted to automate a significant part of its HR operations using AI, believing the system could take over repetitive tasks and reduce the need for human intervention. While the technology worked well for handling forms and basic requests, it faltered whenever empathy or context was required.
Employees interacting with automated HR systems often felt unsupported or misunderstood. The errors and complaints built up and instead of reducing staff, IBM had to bring in more human teams to monitor, correct and guide the AI systems. The company learnt that while AI can assist, it cannot replace the human understanding needed in people-centric functions.
What do these two examples illustrate? AI is not just a plug-and-play approach, as it cannot replicate human judgement, empathy and context. Humans are naturally equipped to handle ambiguity, think creatively and adapt to new situations. AI, on the other hand, relies on data, patterns and predictions based on past information. The winning formula is not “replace humans with AI” but “let humans and AI work together”. AI handles repetition, patterns and scale; humans handle emotion, ethics and complexity. When companies approach AI this way, productivity rises, customers stay happy and teams become stronger, not weaker, period!
Digital transformation in Oman is accelerating quickly and AI adoption is among its chief plans, no doubt. Global examples and case studies should be a base to explore and learn in order to avoid the catastrophic outcome as a result of the bold ambition. The goal shouldn’t be to replace human talent but to elevate it. Companies that understand this balance are the ones that gain the most from AI.
They’re not eliminating roles; they’re redesigning them. They’re not reducing headcount; they’re reallocating strengths. Augmenting and working with humans is the best mix one should strive for today as far as AI adoption is concerned. Until we catch up again next week, stay relevant and safe!
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