CEOs are facing a strategic fork in the road when it comes to AI. Are they primarily seeking to improve the bottom line through automation and headcount reduction, or grow the top line in innovative ways through augmentation?

As they make this decision, leaders are underestimating how employee perception—and the predictable behavioral dynamics that follow—will determine the success of their AI strategy. Automation strategies will likely show early gains relative to the deeper investment required for augmentation, but augmentation will likely perform better in the long run. That’s because while automation offers immediate cost-savings, a company’s long-term success is determined by how people feel about their work, whether they meaningfully engage with new tools, and whether top talent stays.

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