AI Layoffs, Hype and Regret: What Fortune 500 CEOs Wish They Had Known

When 80% of Fortune 500 CEOs admit they regret their rushed AI investments, something fundamental has gone wrong with how organisations approach artificial intelligence. In this episode of Chatting GPT, Mary Rose Lyons of AI Institute (Ireland & UK) sits down with Stephen Klein—a marketer turned educator turned AI specialist—to explore the untold story behind the AI hype cycle.

The Layoff with a Paint Job

Klein does not mince words about what many organisations have actually achieved with their AI investments. "It's just a layoff with a paint job," he argues. Companies rushed to implement AI systems, laid off staff to reduce costs, and are now discovering that the technology cannot actually deliver what was promised.

The pattern is remarkably consistent. Organisations invest heavily in AI tools, announce impressive digital transformation initiatives, and reduce headcount accordingly. Then reality sets in. The AI systems require constant human oversight. Outputs need checking, errors need correcting, and the promised efficiency gains fail to materialise. Many companies are quietly rehiring staff to manage the very systems that were supposed to replace them.

Who Really Wins in the AI Boom

If the businesses investing in AI are not seeing returns, who is? According to Klein, the answer is management consultants. They are the biggest winners in the current AI boom, collecting £3–5 million per engagement for what often amounts to a slide deck, a single pilot project, and a press release.

This consulting-driven approach focuses on high-visibility, low-risk pilots that generate impressive presentations but rarely translate into meaningful organisational change. The consultants move on to the next engagement, leaving behind systems that require expensive maintenance and deliver limited value.

Curiouser.ai: A Different Approach

Klein's own venture, Curiouser.ai, represents a fundamentally different philosophy. Rather than AI replacing human workers, Curiouser.ai inverts the relationship—the AI prompts and questions humans, functioning as a Socratic augmentation coach for individuals and organisations.

This approach recognises that the real value of AI lies not in automation but in augmentation. The technology becomes a thinking partner that helps humans develop deeper insights, question assumptions, and arrive at better decisions. It is a tool for enhancing human capability rather than eliminating human contribution.

The Startup Opportunity

Klein points to a striking statistic: startups and entrepreneurship drive 62.7% of new job creation. Yet 90% of startups fail. The implications are profound. Improving the startup success rate by even one percentage point could generate 150,000–200,000 new jobs.

This suggests that AI-powered entrepreneur support represents a viable policy lever. Rather than focusing exclusively on AI adoption within large enterprises, organisations and policymakers should consider how AI can support the startup ecosystem that drives the majority of employment growth.

Toward an Age of Trust

Looking beyond the current hype cycle, Klein envisions an "age of meaning and trust" where technology finally serves people. This future requires moving beyond the current focus on efficiency and automation toward a more human-centred approach that values ethics, meaning, and genuine human flourishing.

For business leaders in Ireland and the UK, the message is clear: rushed AI adoption driven by hype and consultant recommendations is unlikely to deliver value. The organisations that thrive will be those that approach AI strategically, focus on augmentation rather than replacement, and maintain their commitment to human values even as they embrace new technology.

Want the full conversation? Watch the Chatting GPT episode on YouTube here: https://www.youtube.com/watch?v=4GVgrkPPsCo