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AI-Washing: CEOs Blame Job Cuts on Tech
8 Feb
Summary
- Experts suggest tariffs and overhiring are bigger layoff factors.
- Companies allegedly use AI as a cover for financial decisions.
- Forrester projects only 6% of US jobs automated by 2030.
US corporate leaders have increasingly cited artificial intelligence as the reason for workforce reductions over the past year. However, economists and technology analysts are questioning these explanations, pointing to other significant factors like tariffs, excessive hiring during the Covid-19 pandemic, and a drive for increased profits.
This phenomenon, referred to as "AI-washing," involves companies claiming technological advancements necessitate layoffs. Reports indicate over 54,000 layoffs were attributed to AI in 2025, with major tech companies like Amazon and Hewlett-Packard mentioning AI in their workforce reduction plans. Yet, market research suggests a much smaller percentage of jobs will be automated by 2030.
Experts argue that attributing job losses to AI provides a convenient public relations shield, potentially avoiding criticism related to economic policies or internal financial decisions. Additionally, overhiring during the pandemic, fueled by low interest rates and talent wars, may have left companies overstaffed.
While some roles, particularly in customer support and technical writing, may genuinely be replaced by AI, widespread automation across most occupations is not anticipated soon. The complexities and time required to implement mature AI applications suggest that immediate, large-scale job replacement is unlikely for many companies.
