Removing AI or ‘washing AI’? | TechCrunch


How many of the companies with recent layoffs are actually adapting their workforce to the efficiencies and challenges of artificial intelligence? And how many of them are just using AI as an excuse to cover up other problems?

That is the question asked by a New York Times article in the trend of “AI-washing,” where companies cite AI as the cause of layoffs that could be due to other reasons, such as overhiring during the pandemic.

AI is the stated reason for more than 50,000 layoffs by 2025, with Amazon and Pinterest among the tech companies that have blamed the technology for recent cuts.

but a Forrester report published in January argued, “Many companies announcing AI-related layoffs do not have mature, vetted AI applications ready to fill the roles, highlighting a trend of ‘AI-washing’ – which accounts for cutbacks due to financial reasons for future AI implementation.”

Molly Kinder, a senior research fellow at the Brookings Institute, noted that saying the layoffs are due to AI is a “very welcoming message to investors,” especially when the alternative might mean admitting, “Business is hurting.”



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