Has artificial intelligence truly blessed workplaces with unprecedented gains, or are the recent layoffs another result of AI washing? Companies are using AI as a permissible reason for layoffs, but this has employees feeling more suspicious than ever before.
Not a day goes by that a new report on artificial intelligence doesn’t make an appearance. Some days, there are new reports on advancements in technology, while on other days, the news cycle is dominated by their potential harms. A different CEO shares their opinion on the tech every day, alternating widely between promising that the technology will end employment as we know it, and then switching to a narrative where the technology is, ultimately, not all that threatening. This whishy-washy approach to AI has the global population in a tizzy, unsure if they should prepare for permanent unemployment or an alternate future where they will be allowed to earn a living alongside AI.
Amidst this chaos, we have also seen matters complicated further by a scourge of layoffs, all attributed to seeking efficiency via AI. Initially, these layoffs were taken as a sign of the highly efficient nature of the technology and its ability to revolutionize operations in a mechanical heartbeat. More recently, however, contradictory data has allowed this allure of AI to dim to a degree, leaving many wondering if the technology is truly as impactful as tech tycoons will have you believe. As experts in HR and not IT, we can’t comment on the true quality and efficiency of the tech, but what we can do is understand how these conversations are affecting the workforce.
Businesses are being accused of “AI washing,” using the tech to disguise the real reason behind the recent era of mass layoffs. (Image: Pexels)
What Is AI Washing and How Are Layoffs a By-Product of This New Trend Taking Over Tech?
You may have heard of the term “AI washing” used liberally in recent months and wondered what it means. Simply put, the term AI washing is a reported corporate strategy where the role of AI in the workplace is exaggerated and shared to inflate its capabilities and present it as a more advanced tool than it might be in practice. With employers across the US using AI as a permissible reason to give for layoffs, the term AI washing has grown in popularity as a way for naysayers to suggest that the technology is being credited for more than its due.
Some of these AI-driven layoffs have been introduced with the explanation that there is diminished need for labor thanks to the capabilities of this advanced technology. In these situations, businesses have reported that they have already seen gains from AI optimization and no longer need as many hands on the deck. Other layoffs have been introduced to reorganize resources for future investments in AI. Rather than suggest that AI has already transformed their business, some employers indicate that investing in AI is essential to keep up with the future of their industry.
These appear to be quite believable explanations for investments into AI, so you might wonder why they are being accused of AI washing their layoffs. Why would companies bring negative attention to the very tools that they are trying to promote among their workers?
Why Would Companies Blame Their Layoffs on AI?
According to the allegations, AI washing has been occurring as a result of businesses trying to bring down their numbers without suggesting any negative business prospects, such as an inflated workforce as a result of their poor planning or falling revenue numbers that necessitate cost cuts.
AI washing also allows businesses to make decisions that would otherwise be frowned upon, such as shrinking headcount to offshore the work to other locations. Many also believe that AI washing is a way for corporate entities to arbitrarily participate in the AI-fueled growth that is being witnessed across industries, showcasing their preparedness for the future.
AI critics have likened the processing of AI washing to false advertising and misinterpreting the technology. When companies use AI to justify layoffs, it causes resentment around the technology to build and obscures deeper operational issues within the organization in favor of a quick resolution. It also creates confusion around the real potential of this technology rather than allowing for genuine discourse on how it is changing the workplace.
Are Companies Really Using AI as an Excuse for Layoffs?
The link between AI washing and ongoing layoffs is an entirely abstract one, as no companies have come right out to say that they were misguided in their expectations of AI. Sam Altman, CEO of OpenAI, arguably one of the biggest names in the AI industry, reportedly spoke out about these AI-driven mass layoffs and suggested that AI washing was a very real phenomenon. “I don’t know what the exact percentage is, but there’s some AI washing where people are blaming AI for layoffs that they would otherwise do, and then there’s some real displacement by AI of different kinds of jobs,” he said during the AI Summit in India.
A National Bureau of Economic Research working paper suggested something similar after looking at data from the US, UK, Germany, and Australia. The paper claimed that firms report little impact of AI over the last 3 years, with over 80% of them seeing no impact on either employment or productivity. This matches data seen from last year, which suggested that 95% of AI pilot programs fail to deliver any substantial results.
With organizations investing so heavily in AI, a zero percent impact is unlikely, but much of the data diminishes the golden sheen of AI. As companies continue to use AI as an excuse for layoffs, it is likely that the appeal of the technology will further be diluted among workers, even as they gear up to familiarize themselves with the tech.
As We Understand the Extent of AI Washing, Here’s Some Career Advice for Those on the Job Market
Whether organizations are AI washing their layoffs or genuinely believe in the power of the technology, there is no way to accurately estimate how many jobs are now being performed successfully and sustainably by the technology. Regardless of the implications, the technology is capable of automating some tasks and working faster and more efficiently compared to employees, and jobs and roles will be altered by the increased use and training of this tech.
Whether the jobs are ultimately performed by AI or organizations are only AI washing for purposes of their own, it is hard to deny that the layoffs are real. This means that preparing for an AI-driven future is essential for anyone hoping to build a career in the future. Learning about emerging technology, understanding its impact on your industry, and determining ways that it can be employed in your role are essential considerations.
The AI bubble may or may not burst, but the impact on jobs makes it so that entire institutions are evolving. Obtaining certificates to authenticate your experience with the tech can work in your favor, as well as making any other changes to your resume to make it stand out from competitors. It can also be wise to explore new and emerging roles to determine where the jobs are growing most steadily. The unpredictability of the market makes it hard to achieve and switch career paths on a whim. However, with the whisper of agility at the forefront of the minds of business leaders, agility in individual careers will be key as well.
Will AI Washing Continue to Dominate Corporate Conversations?
With the noise around artificial intelligence, it is becoming increasingly difficult to decipher where business interests truly lie and how the technology performs in action. Some workers do report productivity gains and successful operations thanks to AI, but there are tricky aspects to navigate here as well, including growing workloads and burnout. For business leaders, it is important to coordinate with their HR teams and honestly evaluate the impact of the technology on the employees.
AI is set to automate entry-level roles but leave more senior positions untouched. However, when seniors graduate from the organization or retire, there will be a lack of qualified talent to take on these roles. Choosing to forgo hiring and employee development entirely in favor of the technology may be a viable strategy right now, but it is important to question whether it is a sustainable one.
AI technology isn’t a single capable institution but is made up of a variety of models, tools, and services that perform to varying standards. While investing in these tools and their potential, it is essential to remember the strengths of the human workforce and their own contributions towards keeping these systems in check for the long haul.
Do you agree that companies are AI washing when announcing layoffs? Share your thoughts and opinions with us in the comments. Subscribe to The HR Digest for more insights on workplace trends, layoffs, and what to expect with the advent of AI.
