White House Official Says Companies Use AI to Mask Layoffs

Director of the White House Office of Science and Technology Policy Michael Kratsios stated that some companies falsely attribute layoffs to artificial intelligence to improve their public image. Speaking on the "Moonshots with Peter Diamandis" podcast, Kratsios suggested that firms cite AI for workforce reductions they would have performed regardless because such narratives play better in the press and can positively influence stock prices.

This phenomenon, described as AI-washing, has also been noted by OpenAI CEO Sam Altman. Both leaders suggest a distinction between genuine job displacement caused by technology and strategic corporate messaging designed to mask traditional downsizing.

While Kratsios expressed long-term optimism regarding AI's impact on jobs, he criticized doomer rhetoric regarding bio-weapons and job losses for creating widespread public skepticism and poor PR for the industry. These comments follow the U.S. federal government's release of an AI Action Plan in July intended to expedite data center permitting and deprioritize states with burdensome AI regulations.