AI Washing Used by Over Half of HR Leaders to Justify Mass Layoffs

A survey of 1,000 HR managers found that 59% cite promised future gains from artificial‑intelligence investments as a rationale for large‑scale redundancies, even when the cuts stem from financial or other operational issues. This practice, termed “AI washing,” was highlighted by Bell Gama, CEO of Air Branding, who said it creates a “corporate smoke screen” that erodes employee trust and damages the employer’s brand reputation. Gama warned that when workers perceive the AI narrative as a false promise, the psychological contract breaks down, leading to rapid “cancel‑culture” backlash on platforms such as LinkedIn and Glassdoor. The study also noted that only 9% of respondents believe AI has fully replaced any job function, underscoring the gap between the stated justification and the actual role of technology in the layoffs. The fallout includes loss of “share of heart,” decreased talent attraction, and heightened scrutiny of corporate transparency during restructuring.