As layoffs continue across global industries, many companies are citing the rise of artificial intelligence as a key reason for cutting jobs. Major corporations—including tech giants like Amazon—have pointed to AI-driven efficiencies when announcing workforce reductions. But labor experts say that using AI as the explanation may be a convenient way for companies to avoid acknowledging deeper financial or structural problems.
According to NBC News, while businesses have been “blaming the promise of productivity with artificial intelligence” for the cuts, there is still “uneven evidence that the promised cost-savings from AI are actually worth what companies are putting into it.” This has raised questions about whether AI is becoming a “fig leaf” to disguise more traditional causes for layoffs, such as declining profits or overexpansion.
MIT economist David Autor told NBC that it is “much easier for a company to say, ‘We’re laying workers off because we’re realizing AI-related efficiencies’ than to admit the company is struggling or cutting costs due to a slowing economy.” Even if AI played no real role in a layoff, he said, companies may find it strategically beneficial to attribute the change to AI.
Amazon has become a leading example. The company recently announced 14,000 new job cuts, just months after CEO Andy Jassy suggested that AI would lead to reductions in staff. While some analysts believe that Amazon is indeed beginning to realize productivity gains from AI tools, others remain doubtful that the layoffs are truly driven by automation. As BBC News noted, there is a “tendency to overinterpret individual company announcements” because public anxiety around the future of AI and employment is so high.
Regardless of whether AI is being overstated as the cause of job loss, the technology is reshaping the labor market. A research paper released by Microsoft in July 2025 identified 40 occupations that could be vulnerable to AI automation, listing interpreters, writers, and customer service representatives among the most at-risk roles. Meanwhile, jobs involving hands-on physical tasks—like phlebotomists, nursing assistants, and waste removal workers—appear far less threatened.
The report concluded that understanding AI’s economic impact will be one of society’s most important challenges in the coming years. As generative AI continues to evolve and expand across industries—from medicine to software development—its influence on the workforce is expected to accelerate.