Sam Altman says some companies use AI washing over layoffs
Updated
Updated · Fortune · May 3
Sam Altman says some companies use AI washing over layoffs
10 articles · Updated · Fortune · May 3
Speaking at the India AI Impact Summit, the OpenAI chief said some job cuts are wrongly blamed on AI, though he expects genuine displacement to become more visible in coming years.
Recent studies show mixed evidence: an NBER survey found nearly 90% of executives saw no employment impact, while Yale Budget Lab data through March 2026 found no significant macro labour changes.
Yet warnings persist, with Anthropic's Dario Amodei predicting heavy entry-level losses and other research pointing to productivity gains and a 13% employment drop for early-career workers in AI-exposed roles.
With AI eliminating entry-level jobs, is the traditional career ladder for young professionals about to collapse?
Is 'AI washing' a corporate excuse, or are we blind to the start of a jobs revolution?
The 16% Decline in Entry-Level AI-Exposed Jobs Amid 2025-2026 Tech Layoffs
Overview
Between 2025 and 2026, many tech companies attributed large layoffs to AI adoption, driven by investor pressure and a need to show returns on AI investments. However, much of this workforce reduction also reflects a correction after rapid pandemic-era hiring, a phenomenon called "AI washing." While AI automates routine tasks, especially affecting entry-level roles, broad economy-wide job displacement remains limited. Middle management and administrative positions face growing risks as AI matures, prompting calls for strategic reskilling and organizational redesign. Successful adaptation depends on blending human skills with AI, fostering collaboration, and addressing employee concerns amid this complex transition.