This week's business news shows that the story about AI destroying jobs might not be the real story after all. Instead, the main problem is high interest rates making it expensive for companies to borrow money. When interest rates go up, companies focus on saving money rather than finding new ways to work better. This is why layoffs are happening right now—not because AI is taking over, but because expensive loans are forcing businesses to cut spending. Experts like Gbenga Ajilore from the Center for Budget Policy and Priorities say the economy is "paralyzed," and AI is not the reason.

The interesting news is coming from smaller companies. Businesses with 10 to 499 workers are showing how to handle AI differently. Instead of saying "AI will replace workers," these smaller companies are using AI agents to multiply what their workers can do. An AI agent is like a smart assistant that can do certain tasks very well, but needs human judgment to make it work right. For example, an AI agent might sort through purchase requests, but a human still decides whether to approve them. This approach is working: almost half of the leaders at these smaller companies stayed confident and positive during 2025's economic challenges. The number of small business leaders planning to expand their AI agent programs jumped by 12 percentage points in just one year.

Large companies are preparing for a workforce change coming in 2026. The first students who grew up learning about AI tools like ChatGPT will graduate and start working at regular jobs. These workers already know how to use AI as a teammate and coach to help them work faster and learn more quickly. Companies need to rethink how they train new employees, give them meaningful work, and organize their teams around problem-solving rather than just following rules. Leaders who embrace this change will position their companies to be more innovative and competitive.

However, many large organizations are not ready. Research from The Conference Board shows a big gap: 85% of workers believe AI will make their jobs better, but only 54% of company leaders have a clear plan that connects AI improvements to what the business actually needs. Workers are already using AI in their daily work—91% say their tasks have changed because of AI—and most report they are more productive and happier in their jobs. This shows workers are ready, but many organizations lack the leadership and strategy to help them succeed.

Companies using the wrong approach are the ones that try to scare employees into using AI. Some companies have told workers "use AI for 20% of your time or you're fired." These fear-based ultimatums backfire. When people feel threatened, their brains go into protection mode, making it harder to think creatively or innovate. Instead, companies like Microsoft that frame AI as making work easier (not replacing people) see real curiosity and genuine adoption from employees. The most successful approach is open communication where leaders and workers together figure out how to use AI, rather than forcing it from the top down. The future of AI in the workplace will be built by leaders who help their teams feel safe learning and experimenting, not by those who create fear and pressure.