No Company Admits AI Will Replace Workers in New York


More than 160 New York state companies have filed notices of mass layoffs since March. None—of the inclusive group AmazonGoldman Sachs, and other adopting employers AI tools—attributed to their workforce reduction in “technology change or automation” filings.

That option was added 11 months ago to a required inquiry into the paperwork that businesses with 50 or more employees must file with the state to announce mass layoffs. The New York Department of Labor told WIRED that, as of the end of January, no employers had identified technology as a reason to cut their workforce.

In the last two years, many companies have celebrated the elimination of repetitive tasks such as customer service, FROMand accounting in AI systems. But it says they are ditching human workers in favor of AI agents or robots may risk reputational damage. And economists face challenges in tracking the emissions of technological advances because companies can take decades to completely reorganize around new ways of working.

Enter New York governor Kathy Hochul. To get a better handle on the current reality, he ordered the Labor Department to begin questioning whether AI is causing the layoffs. New York becomes the first state with an AI option, according to legal experts.

New York businesses can choose multiple reasons among a list of 17 in total that also includes “bankruptcy,” “merger,” “relocation,” and “other,” for required Worker Adjustment and Retraining Notification, or WARN, filings. If any company selects the tech and automation option, they will receive an additional question asking them to specify the technology that is taking over the job, such as AI, robotics, or “software modernization.”

More than 750 announcements covering 162 employers and affecting nearly 28,300 workers followed the launch before AI arrived. The results suggest that companies can be Avoiding the AI ​​question. Or it’s a sign that workers don’t have to fear anything more than the traditional drivers of layoffs.

Some of the filers include caterers and retailers whose staff have not yet been widely involved in AI-capable replacements. On the other hand, Goldman Sachs led the way with more than 4,100 workers affected by layoffs or location closings, according to New York records. Amazon is among the top 10 with 660 affected workers. Morgan Stanley, another AI adopter, reported 260 workers out of a job.

Inside, Goldman Sachs INVOLVED its takedown last year of AI’s potential to unlock significant productivity gains. Amazon Warned ahead of the latest waves of layoffs, affecting about 30,000 workers in total, that benefits from AI will lead to job cuts. An unnamed source Bloomberg said that a small portion of Morgan Stanley’s layoffs reflect the use of AI and automation. Companies operate globally, so it’s possible that only employees outside of New York are being laid off in favor of AI.

In total, nearly 55,000 US companies said they would cut jobs to adopt AI last year, according to an analysis of the public statements of the job search firm Challenger, Gray & Christmas.

However, none of these improvements show up in New York’s unique data that reinforces the challenge with the answer is the question on everyone’s mind: “Will AI take my job?”

Amazon spokeswoman Kelly Nantel said, “AI is not the cause of most” of the cuts and that the goal is to “reduce layers, increase ownership, and help reduce bureaucracy.”

Goldman Sachs declined to comment. Morgan Stanley did not respond to requests for comment.

Accuracy Checks

WARN filings are intended to give state agencies advance notice of cutbacks, so they can ramp up services to help people quickly find new jobs. Companies face $500 per day in fines for not complying with filing requirements.

Kristin Devoe, a spokeswoman for the governor, said the Department of Labor follows up with each employer to ensure the accuracy of the filings. In the case of Amazon, for example, the company listed “the economy” as the reason for the layoffs, according to Devoe. The department explained that employees hired during the pandemic to respond to surges in online shopping are no longer needed.



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