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Chronicles

The story behind the story

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How Schneider Electric is using AI in call centers and manufacturing to complement employees' work and boost productivity, rather than to replace them

For many chief executives, success in adopting artificial intelligence is measured by the number of jobs they can eliminate.

New York Times Patricia Cohen

Context & Ripple Effects

The related coverage places Schneider Electric’s approach against a broader executive push to use AI for efficiency, while evidence on implementation remains mixed: many leaders have mandated adoption without fully embedding the tools in their own work.

This is also part of Schneider’s industrial-AI buildout, including its agreed acquisition of Cognite and planned combination with Aveva. Nearby coverage suggests that outcomes differ materially between AI used to extend employee capability and AI used chiefly for cost cutting.

First-order effects

  • Schneider Electric’s call-center and manufacturing employees are the immediate users of AI designed to support existing work, making productivity gains dependent on workflow adoption rather than headcount reduction.
  • The company is applying the same employee-complement framing across customer-service and industrial settings, where human oversight and domain knowledge remain part of the operating model.

Second-order effects

  • Schneider’s industrial software strategy gains a clearer use case: AI capabilities can be positioned as tools for frontline and operations teams, not solely as back-office automation.
  • Competitors pursuing AI-led efficiency programs face pressure to show measurable operational benefits and workforce adoption, rather than treating deployment mandates as proof of integration.

Third-order effects

  • If capability-enhancing deployments consistently outperform pure cost-cutting efforts, AI competition may increasingly turn on redesigning jobs, training, and software workflows—not simply reducing labor inputs.
  • The workforce effect remains unsettled: related research indicates AI can broaden and intensify work even when it does not eliminate it, while wider shifts from labor income toward capital income could raise policy concerns.

The trend: Enterprise AI is moving from broad efficiency mandates toward operational deployments whose value depends on combining automation with human expertise and redesigned work.

Discussion

  • @stanforddel @stanforddel on bluesky
    “A lot of people are under the mistaken idea that the only way that you get productivity from A.I. is by removing labor costs.”  — @erikbryn.bsky.social  —  @nytimes.com looks at a case where AI makes workers more productive, rather than replacing them: www.nytimes.com/2026/05/29…
  • @uniglobalunion.org @uniglobalunion.org on bluesky
    We know AI can make us more productive.  —  But the $100 trillion dollar question: will corporations share the profits from that productivity jump?  —  www.nytimes.com/2026/05/29/b...