May 3, 2026
ABC News Australia recently highlighted research from Gerry Tsoukalas, Professor of Information Systems, examining the “AI lay-off trap” — the idea that large-scale AI-driven automation could ultimately erode the consumer demand businesses depend on for growth.
The analysis explores how companies may continue replacing workers to remain competitive, even while recognizing that large-scale layoffs reduce spending power across the broader economy.
As Tsoukalas and his co-author write, “This is the trap: an automation arms race that only intensifies as AI improves, that leaves workers and firm owners alike worse off, and that no market force can break.”
The piece positions the research within a larger conversation about AI, automation, and the long-term economic consequences of accelerating workforce displacement, reinforcing growing debate around how organizations can balance AI-driven efficiency with sustainable economic growth and workforce stability.
