AI isn’t taking ERP Jobs – But some companies want you to think it is
AI Isn’t Taking ERP Jobs—But Some Companies Want You to Think It Is
Oxford Economics just published research that confirms what many of us have suspected: firms citing “AI” for recent layoffs are often using it as cover for past overhiring mistakes.
The data is telling: → AI cited in only 4.5% of 2025 layoffs → Traditional factors (market conditions, restructuring, cost-cutting) remain the primary drivers → Federal Reserve Chair Powell: AI impact on jobs “not a big part of the story yet”
As Oxford Economics’ Ben May puts it: “We suspect some firms are trying to dress up layoffs as a good news story rather than a bad one…by pointing to technological change instead of past overhiring.”
What I’m seeing in the Microsoft Dynamics & NetSuite ecosystem:
The narrative matters—especially for PE/VC firms evaluating portfolio company staffing. When a partner firm or end-user client cites “AI efficiency” for workforce reductions, dig deeper. Often it’s actually:
The nuance that gets missed:
Yes, certain repetitive ERP tasks are evolving. But the same LinkedIn research shows AI-related roles are among the fastest-growing positions in 2026. The shift isn’t job elimination—it’s job transformation.
The best Dynamics and NetSuite professionals are already leveraging AI tools to deliver higher-value strategic work. Smart organizations are investing in this evolved talent, not cutting under the guise of “automation.”
For portfolio companies and consulting firms: Don’t let the AI narrative justify underinvestment in critical ERP implementation talent. Failed projects from understaffing cost exponentially more than saved headcount.
The transition is gradual, not overnight. Plan accordingly.
Oxford Economics just published research that confirms what many of us have suspected: firms citing “AI” for recent layoffs are often using it as cover for past overhiring mistakes.
The data is telling: → AI cited in only 4.5% of 2025 layoffs → Traditional factors (market conditions, restructuring, cost-cutting) remain the primary drivers → Federal Reserve Chair Powell: AI impact on jobs “not a big part of the story yet”
As Oxford Economics’ Ben May puts it: “We suspect some firms are trying to dress up layoffs as a good news story rather than a bad one…by pointing to technological change instead of past overhiring.”
What I’m seeing in the Microsoft Dynamics & NetSuite ecosystem:
The narrative matters—especially for PE/VC firms evaluating portfolio company staffing. When a partner firm or end-user client cites “AI efficiency” for workforce reductions, dig deeper. Often it’s actually:
Post-pandemic headcount correction
Failed implementation investments
Margin pressure requiring optimization
Economic uncertainty, not automation
The nuance that gets missed:
Yes, certain repetitive ERP tasks are evolving. But the same LinkedIn research shows AI-related roles are among the fastest-growing positions in 2026. The shift isn’t job elimination—it’s job transformation.
The best Dynamics and NetSuite professionals are already leveraging AI tools to deliver higher-value strategic work. Smart organizations are investing in this evolved talent, not cutting under the guise of “automation.”
For portfolio companies and consulting firms: Don’t let the AI narrative justify underinvestment in critical ERP implementation talent. Failed projects from understaffing cost exponentially more than saved headcount.
The transition is gradual, not overnight. Plan accordingly.
Source: NewsNation coverage of Oxford Economics research, January 2025
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