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

TL;DR

US companies increasingly cite AI-driven efficiency as the reason for layoffs, but experts are skeptical of these claims.

Key Points

  • Economists point to alternative factors: tariffs, pandemic-era overhiring, and straightforward profit maximization.
  • The term „AI washing” describes how firms use AI as a convenient scapegoat for workforce cuts, even when the technology plays only a minor role.

Nauti's Take

AI makes a convenient lightning rod: sounds cutting-edge, few understand it precisely, and shareholders nod along. Yet the real reason is often more mundane – overhiring, margin pressure, tariff pain.

„AI washing” is the new greenwashing: lots of buzzwords, little substance. Companies should be honest when they simply want to cut costs, instead of blaming the technology.

Otherwise AI becomes the scapegoat for every management blunder.

Sources