Trump tech adviser claims firms blame AI for layoffs to improve public image
White House science adviser Michael Kratsios said companies are using AI as a convenient excuse for job cuts, while remaining hopeful about AI's long-term employment benefits.
During a recent episode of the "Moonshots with Peter Diamandis" podcast, Michael Kratsios, President Donald Trump's science and technology adviser, suggested that some companies attribute planned layoffs to artificial intelligence to improve their public image, noting that such framing can boost share prices. He reaffirmed his belief that AI will be a net positive for the labor market over the long term. Kratsios' remarks align with OpenAI chief Sam Altman's observation of "AI-washing" in layoff announcements and with Nvidia CEO Jensen Huang's criticism of alarmist AI messaging.
One outlet has tracked 17 firms, including Uber, Snap and Block, that have cited AI when announcing cuts. Kratsios, who previously worked at Scale AI and for Peter Thiel, helped craft the White House's AI Action Plan and recently accused Moonshot AI of improperly adapting Anthropic's Fable 5 model for its Kimi K3 system.
Why it matters
The story highlights how AI is being used to shape public perception of corporate layoffs and influences policy debates on technology's impact on jobs.
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