How AI is Reshaping Manufacturing—And Its Workers

By Dara Dotson, Global Workforce Resilience Advisory Board (GWRAB)

The rise of AI and automation is often celebrated as a game-changer for efficiency and innovation, but what happens to the people caught in the crossfire? For companies like Ford and Boeing, adopting AI-powered robotics has brought undeniable productivity gains—but at a steep cost to their workforce.

Ford: When Efficiency Comes at a Human Cost

Ford’s decision to automate its production lines with AI-powered robotic welders wasn’t just a strategy to improve quality; it was a response to inefficiencies and rising labor costs. By 2024, robots replaced workers in critical tasks requiring precision and speed.

While this shift boosted production efficiency by 30% and saved the company $150 million annually, it also displaced 6,000 workers—20% of its North American manufacturing workforce. Only half of those displaced workers were retrained and transitioned into technical roles, leaving 3,000 workers without opportunities to remain in the company.

The retraining effort, while commendable, was limited. With only 3,000 employees offered upskilling programs, the initiative addressed only a fraction of the broader workforce impact, leaving many workers facing the difficult reality of navigating an industry rapidly moving toward automation.

Ford’s example underscores the harsh reality of automation: efficiency gains often come at the expense of human livelihoods, and retraining efforts, no matter how well-intentioned, frequently fall short of addressing the full scale of displacement.

Boeing: Precision Over People

Boeing’s move toward AI-guided robotics in fuselage assembly highlights a similar story. The company’s $500 million investment into automation allowed it to reduce production timelines by 25% while achieving unprecedented precision.

But the workers who built Boeing’s legacy didn’t share equally in its AI-driven success. Manual assembly jobs were rendered obsolete, with 15% of assembly workers displaced globally. Based on Boeing’s estimated 40,000 production workers, this means 6,000 workers were displaced.

Of those, only 2,500 employees transitioned into new roles through certification programs, leaving the majority—approximately 3,500 workers—without opportunities to remain at Boeing.

The numbers tell a stark truth: even when companies invest in retraining, the scale of workforce displacement far outweighs the number of workers who find new roles. Boeing’s gains came at a cost that cannot be ignored—a reduction in its reliance on human expertise.

Ford and Boeing offer a clear warning: as AI continues to transform industries, the human costs cannot be overlooked. While automation promises efficiency and profitability, it often leaves workers behind, forcing society to grapple with the consequences of prioritizing machines over people.