AI and job losses explained: Why Sam Altman says companies are using 'AI washing' to justify layoffs

(FILES) OpenAI CEO Sam Altman speaks during the US Federal Reserve Board of Governors’ "Integrated Review of the Capital Framework for Large Banks Conference" at the Federal Reserve in Washington, DC, on July 22, 2025. (Photo by Mandel NGAN / AFP)

OpenAI CEO Sam Altman says companies often exaggerate AI's role in layoffs, blaming "AI washing" for job cuts that would happen anyway. While AI is impacting jobs, data shows AI-linked layoffs are a small fraction of overall losses, and the debate continues.

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Artificial Intelligence has increasingly been blamed for job losses across the global tech sector, as companies announce layoffs while pivoting toward automation and AI-led operations. Major firms such as Google, Amazon and Tata Consultancy Services have cut thousands of roles in recent months, often citing efficiency gains from AI adoption.

However, Sam Altman, the chief executive of OpenAI, has pushed back against the idea that AI is the primary driver behind most layoffs.

“AI washing” behind layoffs, Altman says

Speaking at the India AI Impact Summit 2026, Altman suggested that many companies may be overstating AI’s role in job cuts.

He later told CNBC-TV18, “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."

Altman argued that while AI is certainly changing how work is done, it is not responsible for every workforce reduction announced by companies.

AI is affecting jobs, but not all of them

At the same time, Altman acknowledged that AI is having a real impact on employment, even if its role is often exaggerated.

He noted that some jobs are being directly affected by AI-driven automation, although he did not specify which roles or sectors are most vulnerable.

Looking ahead, Altman said the broader impact of AI on work is still unfolding.

“We’ll find new kinds of jobs, as we do with every tech revolution," he said.

“But I would expect that the real impact of AI doing jobs in the next few years will begin to be palpable."

What the data shows so far

Data suggests that AI-linked layoffs remain a small fraction of overall job losses. A report by consulting firm Challenger, Gray & Christmas found that around 55,000 layoffs in 2025 were attributed to AI.

While the figure appears large in isolation, it accounted for less than 1 percent of total job cuts recorded during the year, indicating that economic slowdowns, restructuring and cost-cutting still dominate layoff decisions.

Not all AI leaders agree

Other voices in the AI industry have taken a more cautious view.

Dario Amodei, head of Anthropic, has said it cannot be guaranteed that AI will create as many jobs as it displaces.

Meanwhile, Mustafa Suleyman, who leads AI efforts at Microsoft, has warned that many white-collar jobs could be replaced by artificial intelligence within the next eighteen months.

A debate far from settled

Altman’s comments highlight a growing divide within the tech industry over how quickly AI will disrupt employment. While automation is clearly reshaping work, the question of whether AI is driving mass job losses or being used as a convenient explanation remains unresolved.

What is clear is that the impact of AI on jobs is only beginning to take shape, and its full consequences are likely to become clearer in the years ahead.