"How many of the companies with recent layoffs are truly adapting their workforces to the efficiencies and challenges of artificial intelligence? And how many of them were just using AI as an excuse to cover other problems? That's the question posed by a New York Times article on the trend of "AI-washing," where companies will cite AI as the reason for layoffs that might actually be caused by other factors, like over-hiring during the pandemic."
"But a Forrester report published in January argued, "Many companies announcing A.I.-related layoffs do not have mature, vetted A.I. applications ready to fill those roles, highlighting a trend of 'A.I.-washing' - attributing financially motivated cuts to future A.I. implementation." Molly Kinder, a senior research fellow at the Brookings Institute, noted that saying layoffs were caused by AI is a "very investor-friendly message," especially when the alternative might mean admitting, "The business is ailing.""
Many companies claim AI as the cause when making layoffs, raising questions about whether workforces are truly being adapted for AI efficiencies. More than 50,000 layoffs in 2025 were attributed to AI, including cuts at Amazon and Pinterest. The term 'AI-washing' describes citing AI as the reason for layoffs that may stem from other causes like pandemic-era over-hiring. A Forrester report found many firms announcing AI-related layoffs lack mature AI applications ready to replace roles, suggesting attribution to future AI implementation. A Brookings senior fellow characterized AI-caused layoff claims as investor-friendly messaging that can conceal underlying business weakness.
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