ESSAY · AI & ID RECOHERENCE VOL. 6
DISPATCHES FROM THE FRONTIER

Let's Stop Solving AI-Era Problems with Pre-AI Thinking

Why Cutting Jobs Without a Plan Is Just the Beginning of the Problem

When the tools change but the thinking doesn't, layoffs become a strategy instead of a symptom.

There's something happening inside companies right now that most people aren't naming directly.

We see the layoff announcements. We feel the aftershocks in our teams and group chats. We watch talented people walk out with cardboard boxes and exit badges.

But beneath the headlines, there's a quieter pattern that's far more dangerous:

Most companies cutting jobs don't have a reinforcement plan for the people they're losing — or for the people they're keeping.

No retraining. No reskilling. No real pipeline for the capabilities they'll need 12–24 months from now. Just cuts.

1.2M+
U.S. job cuts announced in 2025
Challenger, Gray & Christmas
−34%
Drop in planned hires vs. 2024
Challenger, Gray & Christmas
Challenger Year-End Report, January 2026

U.S. employers announced 1,206,374 job cuts in 2025 — a 58% increase from 2024 and the highest level since 2020. At the same time, planned hires fell to 507,647, the lowest since 2010. The top driver was government restructuring (DOGE actions: 293,753 cuts), followed by technology (154,445), warehousing (95,317), and retail (92,989). AI was directly cited in 54,836 of those cuts.[1]

Whether the cause is government restructuring, AI automation, or market correction, the common thread is the same: cuts without capability reinvestment.

And then the remaining work gets handed to the same people who've been running the show for years — people with deep expertise, institutional memory, and battle scars from earlier waves of change.

All of that matters.

But there's a problem:

They're still using frameworks they were trained on in a pre-AI world.

They're optimizing for metrics that made sense before AI was in the loop. They're making decisions based primarily on their own experience and intuition in a moment when the volume, speed, and complexity of information have exploded beyond what any one person can reasonably track.

This isn't a recipe for transformation.

It's a slow-motion failure mode.

Compression: The Invisible Pressure

AI is compressing three things at once:

What used to take quarters now takes weeks. What used to require a dedicated team can be handled by a small group that knows how to work with the right tools.

McKinsey Global Survey on AI, 2025

88% of organizations now report regular AI use in at least one business function — up from 78% a year ago. But nearly two-thirds remain in the experimenting or piloting stages. Only about one-third have begun to scale AI across the enterprise.[2]

That compression is not easing off. It's accelerating.

And that acceleration is creating a visible split:

The difference doesn't always show up immediately in the quarterly numbers.

But it shows up first in speed, then in quality, then in the talent you can attract, and finally in the gap between where you are and where your market has moved.

Adaptation vs. Transformation

This is the heart of it:

There's a difference between adapting to AI and transforming because of it.

Adaptation sounds like:
"We'll add AI to what we're already doing."

We keep the same processes, structures, and mental models — and we try to make them faster with AI.

Transformation sounds like:
"Because AI exists, what's possible has changed — so what we're doing has to change with it."

Most companies today are in adaptation mode. They're layering AI on top of old frameworks and expecting new outcomes.

McKinsey Global Survey on AI, 2025

While 88% of organizations use AI somewhere, only about 6% qualify as "AI high performers" — organizations reporting both significant value and more than 5% of EBIT attributable to AI. The rest are using AI but not yet transforming with it.[2]

You cannot solve AI-era problems with pre-AI thinking.

The tools are different. The pace is different. The surface area of what's possible is different. If your metrics, incentives, and operating models don't change, you're not transforming — you're accessorizing.

The companies that will win this cycle are the ones willing to:

Everyone else will do what feels safer: cut, reorg, announce, repeat — and quietly fall behind.

The Window Is Closing

If you zoom out and look at the curve of AI capability and adoption over the last few years, it doesn't look like a straight line.

It looks like a curve that keeps bending upward.

Stanford HAI AI Index Report, 2025

AI business adoption jumped from 55% to 78% of organizations in a single year (2023 to 2024). U.S. private AI investment hit $109.1 billion in 2024 — nearly 12 times China's. A growing body of research confirms AI boosts productivity and, in most cases, helps narrow skill gaps across the workforce.[3]

Every month, new tools emerge. Existing tools get better. The gap between what a human can do alone and what a human can do with AI keeps widening.

That curve has a brutal implication:

The window for catching up is not infinite.

Not "someday." Not "in five years." In some industries, the gap between leaders and laggards will be obvious by the end of this year — in productivity, in margin, in product velocity.[2]

Leaders who:

…will own the future of their category.

Those who don't will keep cutting, keep hoping the next hire pool will fix it, keep measuring success with yardsticks from a previous era — until one day the gap is visible to everyone, including their customers and their board.

Questions for Leaders Right Now

If you're responsible for a team, a function, or a company, these are the questions that matter more than your next tool decision:

  1. Am I cutting jobs, or am I redirecting talent?
  2. Am I layering AI on top of old processes, or am I rethinking what's possible?
  3. Am I measuring success with last decade's metrics, or am I updating them to reflect the new reality?
  4. Am I giving my people structured ways to learn and apply new tools, or am I silently expecting them to figure it out alone?

The organizations that answer these questions honestly — and act on what they find — are the ones that will still have options three years from now.[2][3]

What This Means for You

Zoom in from the company to you.

If you're reading this and wondering where you fit — whether your role is safe, whether your skills still matter, whether there's a place for you in what's coming — here's what I want you to hear:

Your skills matter. Your experience matters. Your expertise matters.

But they matter differently now.

The value isn't in what you know.

The value is in what you can do with what you know, using tools that didn't exist when you were trained.

Stanford HAI AI Index Report, 2025

In the U.S., job postings requiring at least one AI-related skill rose to 1.8% in 2024, up from 1.4% the prior year — with regions like Singapore already above 3%. Research shows AI tools are narrowing skill gaps, allowing less-experienced workers to achieve outcomes that previously required deep expertise.[3]

The value is in:

Those are not the skills AI is designed to replace.

They're the skills AI is designed to amplify.

And the people who understand that — who stop waiting for permission, who start experimenting, who build new muscles instead of defending old ones — will not just survive this transition.

They'll lead it.

• • •

Why I'm Building Arcmirror

This is why Arcmirror exists.

Not to replace the tools. Not to be another "AI platform."

To sit alongside the tools, the training, and the changing expectations — and help you see:

Because yes, the tools matter. The training matters. The playbooks and prompts and platforms matter.

But underneath all of that, there is you.

You are the one who decides what to build, what to learn next, and who you're becoming while the curve keeps bending upward.

The window is closing. But it is not closed yet. The only real question is: What are you going to do with the time you have?

Mackenwo Dorval
Founder, Arcmirror.app
P.S.

If you're seeing this adaptation gap play out inside your own company — or if something in this piece hit close to home — I'd like to hear from you. Hit reply and tell me what you're seeing. Where are the cuts happening without a plan? Where is the old thinking holding?

And if this resonated, forward it to someone who needs to read it. The people caught in the middle of this shift rarely get the language for what's happening to them. Maybe this helps.

Sources
[1] Challenger, Gray & Christmas. 2025 Year-End Job Cut Report, January 2026.
challengergray.com
See also: CNBC, December 4, 2025
[2] McKinsey & Company. The State of AI: Global Survey 2025, November 2025.
mckinsey.com
[3] Stanford Institute for Human-Centered Artificial Intelligence (HAI). AI Index Report 2025, April 2025.
hai.stanford.edu