FIR #521: AI Layoffs Are Here. Wait. Strike That. Reverse It.

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FIR #521: AI Layoffs Are Here. Wait. Strike That. Reverse It.

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Everyone from CEOs to politicians has been talking about the likelihood of AI-related job loss, and several companies have already let people go in anticipation that AI can do their work. Ford Motor Company is the latest to rehire those workers when AI proved inadequate for the job. Elsewhere, many of the managers who have let people go regret their decisions, and some companies are revising their hiring plans. To remedy the chaos, Neville and Shel discuss the importance of strategy and knowledge management systems, among other things. Links from this episode: ‘Talent refresh’ | Ford rehires human staff after AI quality-check tools fail to deliverFord rehires human engineers after AI fails to match quality checksReturn of the ‘greybeards’: AI backfired – so Ford had to rehire humansFord Has Been Rehiring Quality Inspectors After AI Fell ShortFord rehires ‘greybeards’ after AI tech fails to deliver The next monthly, long-form episode of FIR will drop on Monday, July 27. We host a Communicators Zoom Chat most Thursdays at 1 p.m. ET. To obtain the credentials needed to participate, contact Shel or Neville directly, request them in our Facebook group, or email fircomments@gmail.com. Special thanks to Jay Moonah for the opening and closing music. You can find the stories from which Shel’s FIR content is selected at Shel’s Link Blog. You can catch up with both co-hosts on Neville’s blog and Shel’s blog. Disclaimer: The opinions expressed in this podcast are Shel’s and Neville’s and do not reflect the views of their employers and/or clients. Raw Transcript: Shel Holtz Hi everybody, and welcome to episode number 521 of For Immediate Release. I’m Shel Holtz Neville Hobson And I’m Neville Hobson. Here’s a story that should make every one of us pause before we get too comfortable handing things over to AI. Ford, the automaker, has just rehired somewhere between three hundred and three hundred and fifty veteran engineers. Note the word rehired. The company had let them go in recent years as it leaned into AI-driven quality checks. Ford calls them greybeard engineers. That’s not a throwaway nickname. It’s the whole point of the story. These are the people with decades of experience across multiple product cycles, and Ford let a lot of them go only to discover it needed them back because the AI wasn’t working the way Ford expected. We’ll look into what happened right after this Charles Poon, Ford’s vice president of vehicle hardware engineering, put it plainly on a call with reporters. Here’s what he said: “Mistakenly, we thought that by just introducing artificial intelligence and ingesting the design requirements that we had, that would produce a high-quality product.” Think about that for a moment. Ford didn’t skip a step. They fed the AI everything that was written down, every design requirement, every documented specification. It still wasn’t enough. And it wasn’t just one system. Ford had installed around nine hundred AI-assisted cameras on the production line specifically to catch quality issues. Nine hundred cameras, and still they couldn’t replace the trained eye of an experienced technician who knows what a problem looks like before it becomes a visible defect. Ford’s chief operating officer, Kumar Galhotra, added more context. He said the company had been leaning more and more on automated quality systems, and the results were disappointing. Teams across software, hardware, manufacturing, and supply chain had also been working in isolation from each other, which meant defects were being caught late and fixed under pressure rather than prevented early. Galhotra described this as a find and fix mentality that Ford is now trying to move away from towards genuinely preventing problems before they start. The returning engineers sit right at the center of that shift. They now run mandatory weekly quality and design reviews, hunting for failure points before a single part reaches the factory floor And here’s the part I think matters most for us. A lot of the people who held that hard-won judgment had already walked out the door to suppliers, to retirement before anyone at Ford thought to capture what was in their heads. Poon admitted as much. “Over prior years, we didn’t pay as much attention as we should have to the experience of our most knowledgeable engineers who have been with us through many product cycles,” he said. So Ford had to buy that expertise back three years into this process at real cost. Was it worth it? By Ford’s own numbers, yes. The company has just topped the J.D. Power Initial Quality Survey for mainstream brands for the first time since twenty-ten. That’s sixteen years. CEO Jim Farley says the rehired engineers are already contributing what he called literally hundreds and hundreds of millions of dollars in savings, largely through reduced warranty and recall costs. Ford’s even projecting around a billion ...

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