'AI Washing' Layoffs: SF Standard Investigates Whether Companies Are Using AI as Smokescreen for Cuts

San Francisco Standard·medium signal

The San Francisco Standard published an investigation on April 2 questioning whether the wave of AI-attributed layoffs is genuine or if companies are 'AI washing' — using artificial intelligence as convenient cover for cuts driven by other factors. A Fortune analysis found that only about 0.4% net employment impact (roughly 500,000 fewer jobs) is genuinely attributable to AI, suggesting the narrative of mass AI replacement significantly overstates current reality.