US companies accused of ‘AI washing’ in citing artificial intelligence for job losses

While AI is having an impact on the workplace, experts suggest tariffs, overhiring during the pandemic and simply maximising profits may be bigger factors

Over the last year, US corporate leaders have often explained layoffs by saying the positions were no longer needed because artificial intelligence had made their companies more efficient, replacing humans with computers.

But some economists and technology analysts have expressed skepticism about such justifications and instead think that such workforce cuts are driven by factors like the impact of tariffs, overhiring during the Covid-19 pandemic and perhaps simple maximising of profits.