Marvin OnumonuShai Ahrony (pictured), CEO at Reboot Online, has warned that businesses are now facing an ‘artificial intelligence (AI) aftershock’ as hidden costs appear after cutting jobs for AI savings.
This comes after a recent report found 10,000 job cuts in July 2025 were linked to AI as firms moved quickly to use automated tools.
Ahrony said: “Companies that rushed to cut jobs in the name of AI savings are now facing massive, and often unexpected costs.
“We’ve seen customers share examples of AI-generated errors – like chatbots giving wrong answers, marketing emails misfiring, or content that misrepresents the brand – and they notice when the human touch is missing.
“Some have even left negative reviews and shared warnings on X, TikTok and Reddit advising others to avoid companies that overuse AI. This kind of reputational damage can be expensive.”
Ahrony added: “In many cases, companies have switched from human customer service to AI-driven support, yet 64% of people prefer human interaction, according to a recent study.
“In 2024, a DPD chatbot swore when prompted by users and told customers that DPD is useless. These new technologies can easily backfire.
“But the U-turn has started to pick up. A few months ago, after firing its workers, Klarna’s CEO suggested the AI job cuts led to lower quality service and wanted them back to improve customer service.
“And we’re seeing the same trend in the PR, SEO and marketing sectors.”
He said: “At Reboot, we’ve had businesses reach out after trying to replace their PR agency with AI.
“They discovered multiple issues, ranging from miscommunication, missed opportunities and hallucinations, all resulting in lower impact on their campaigns.
“It’s like they’re having an AI aftershock.
“These poor AI experiences can not only result in lost revenues, but longer-term brand damage, crisis management costs and reputational risk.”
He added: “Many are now re-investing in human expertise, often blending AI tools to support creativity, rather than replace it entirely.
“Understanding your customers, your brand and your services remains important for sustainable growth.”
