The AI bubble keeps getting punctured

The BBC recently reported on Artificial Intelligence living up to its name: Artificial. ‘Come back’ implored the foolish companies who had prematurely fired employees with true intelligence and decades of experience.

Ford Hired AI to Replace Engineers. It Backfired Badly.

Ford just confirmed it leaned too hard on AI for quality control, and the cleanup ran into the billions.

Over three years it quietly rehired around 350 veteran engineers, the so-called “gray beards,” to fix what its automated systems couldn’t. The sting, from Ford’s own VP of hardware engineering, Charles Poon: they mistakenly thought feeding AI the design requirements would just produce a high-quality product.

  • The trap: Ford’s best engineers left before transferring their knowledge into the systems meant to replace them. The AI had no foundation to learn from.
  • The fix: Returning specialists rebuilt the tools to catch defects before parts hit the line.
  • The payoff: Falling warranty costs are now “hundreds and hundreds of millions” of tailwind, and Ford took the top mainstream spot in J.D. Power’s 2026 quality study for the first time in 16 years.

The lesson is unglamorous: AI didn’t fail because the math broke. It failed because Ford deleted decades of human judgment and realized too late that the people who know when the AI is wrong are the whole game.

And it’s a pattern. Klarna and McDonald’s both quietly walked back AI-for-humans swaps, too. The asterisk: Ford is still the most-recalled US automaker, though execs call that a trailing number.

🔮 Prediction: Expect a quiet wave of “AI reversal” hires over the next 18 months, rebranded as “human-in-the-loop” so nobody admits round one was a mistake. Tacit knowledge doesn’t live in the training data.

Would you trust a car built entirely by AI with zero veteran engineers signing off?

Read the full BBC story here

This story was highlighted by Uncovering AI, Substack.

Unknown's avatar

About borderslynn

Retired, living in the Scottish Borders after living most of my life in cities in England. I can now indulge my interest in all aspects of living close to nature in a wild landscape. I live on what was once the Iapetus Ocean which took millions of years to travel from the Southern Hemisphere to here in the Northern Hemisphere. That set me thinking and questioning and seeking answers. In 1998 I co-wrote Millennium Countdown (US)/ A Business Guide to the Year 2000 (UK) see https://www.abebooks.co.uk/products/isbn/9780749427917
This entry was posted in anthropocene and tagged , , , , , , , , , , . Bookmark the permalink.

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.