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

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

https://www.theguardian.com/us-news/2026/feb/08/ai-washing-job-losses-artificial-intelligence

Publish Date: 2026-02-08 11:00:00

Source Domain: www.theguardian.com

Certainly! Here’s a summary of the article using an unordered list:

• CEOs’ Use of AI as a Justification for Layoffs: Many US corporate leaders have attributed layoffs to advancements in artificial intelligence, claiming it has made their companies more efficient by replacing human jobs with computers.

• Skepticism Towards AI Justification: Economists and technology analysts argue that layoffs are often due to factors such as tariffs, overhiring during the Covid-19 pandemic, and maximizing profits rather than genuine AI-driven efficiency improvements. They suspect “AI-washing” is occurring, where companies use AI as a convenient scapegoat for layoffs.

• Examples of Companies Citing AI for Layoffs:

  • Amazon: Laid off around 30,000 employees in 2022 citing AI and a push for a more “lean” organization.
  • HP: Announced plans to cut 6,000 jobs, saying that AI would boost productivity and customer satisfaction.
  • Duolingo: Promised to phase out the use of contractors for tasks that AI could handle.

• Analysts’ Insights: Experts like JP Gownder from Forrester indicate that few jobs will be automated by 2030 and that developing AI-replacement tools can take up to 24 months.

• Financial Motivations: Many layoffs attributed to AI might actually be financially driven. Companies may be reluctant to acknowledge the impact of tariffs due to potential backlash and prefer attributing layoffs to cost efficiencies.

• Case Studies:

  • Salesforce: CEO Marc Benioff claimed to have reduced customer staff using AI agents, which some analysts found plausible given the nature of customer support tasks.
  • Amazon Reversal: Amazon’s CEO Andy Jassy initially cited AI for layoffs but later clarified it was more about cultural changes, not AI or finances.

• Internal Evidence: Former Amazon employees argue that layoffs were driven by the desire to cut costs. One laid off employee claimed that AI facilitated the hiring of cheaper, junior employees to perform her previous tasks.