In a troubling trend, a growing number of U.S. companies are increasingly citing artificial intelligence (AI) as a reason for their recent layoffs. But as experts warn, this may be little more than a misleading tactic known as "AI washing" - a practice of exaggerating the role of AI to cover up other, less palatable motives.
According to a recent report from The Guardian, AI was cited as a factor in over 54,000 U.S. job losses in 2025. In contrast, tariffs were blamed for fewer than 8,000 layoffs over the same period. This stark disparity has raised eyebrows among economists and technology analysts, who say the timeline simply doesn't add up.
Artificial Intelligence: The Scapegoat of Choice
"Most economists would tell you that that was implausible," said Martha Gimbel, executive director and co-founder of the Budget Lab at Yale University. "ChatGPT was only released three years ago... It is not the case that a new technology develops and the workforce adjusts immediately. That is just not how it works."
The reality, it seems, is that many companies are using AI as a convenient scapegoat to justify layoffs driven by other factors, such as post-pandemic over-hiring, efforts to boost profits, or even simply a desire to trim bloat. As Fortune reports, the looming "AI jobspocalypse" hasn't actually materialized yet.
The Troubling Trend of 'AI Washing'
This practice of "AI washing" - where companies exaggerate their AI capabilities to raise their value and justify layoffs - is creating a host of problems. Not only does it erode trust in both the companies and the technology itself, but it also contributes to a growing sense of job insecurity among workers.
As The Week points out, AI washing can take many forms, from showcasing unrealistic AI performance to simply rebranding traditional analytics as "artificial intelligence." And the consequences can be dire, both for employees and the public perception of emerging technologies.
The Bigger Picture: Responsible AI Adoption
The rise of AI holds immense promise, but its implementation must be done responsibly and transparently. Companies should be held accountable for their claims and the impacts of their decisions. Policymakers and regulators must step in to ensure that the transformative power of AI is not abused or misrepresented.
Only then can we truly harness the potential of artificial intelligence to drive innovation and progress, without the specter of "AI washing" casting a shadow over the future of work.