Michael Kratsios challenges 'AI-washing' narrative in corporate layoffs

White House science and technology adviser Michael Kratsios has challenged the prevailing narrative that artificial intelligence is the primary driver behind recent waves of corporate layoffs. Speaking on the 'Moonshots with Peter Diamandis' podcast, Kratsios suggested that some companies may be engaging in 'AI-washing'—attributing workforce reductions to AI to improve public perception.

Kratsios noted that companies might assign blame to AI for layoffs they would have conducted regardless due to traditional reasons like high costs or overhiring because it "plays better in the press." The discussion highlighted how investors may reward businesses that demonstrate increased productivity and revenue with fewer employees, incentivizing the AI-related narrative during restructuring.

Despite these claims, data from Challenger, Gray & Christmas indicates that AI is a significant factor in job cuts. Through June 2026, US employers cited artificial intelligence in 101,743 announced job cuts, accounting for approximately 23% of all tracked reductions. Kratsios maintained an optimistic long-term view, stating he is "quite bullish" on the eventual impact of AI on job creation.