OpenAI's Sam Altman warns that firms are using 'AI washing' to mask layoffs across the globe — AI boss calls out corporate excuses while warning of 'palpable' job disruption ahead

Source: Tom’s Hardware

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Altman’s remarks on “AI washing”

In an interview with CNBC at the India AI Impact Summit, OpenAI CEO Sam Altman warned that some companies are using “AI washing” – blaming AI for layoffs they would have made anyway – as an excuse to reduce headcount. He said:

“I don’t know what the exact percentage is, but there’s some AI washing where people are blaming AI for layoffs that they would otherwise do, and then there’s some real displacement by AI of different kinds of jobs.”

Altman added that, while AI is disrupting the workplace, he remains optimistic: “We’ll find new kinds of jobs, as we do with every tech revolution,” and expects the impact of AI on employment to become “palpable” in the coming years.

Survey data on AI’s impact on productivity

A recent National Bureau of Economic Research survey of executives found that 80 % reported no productivity gains from AI and no noticeable effect on employment numbers. This aligns with concerns raised by other AI leaders, such as Microsoft AI boss Mustafa Suleyman, who predicts that AI could replace white‑collar jobs within 18 months.

Evidence from the Yale Budget Lab

A Yale Budget Lab report, using U.S. Bureau of Labor Statistics data, shows no significant change in occupational shifts or average unemployment duration from the release of ChatGPT up to November 25. If firms were broadly cutting jobs because of AI, the data suggests that such large‑scale displacement has not yet materialized.

Outlook

Despite over $258 million of global venture capital invested in AI in 2025, businesses still need to justify these expenditures. Altman’s comments may offer little comfort to workers in roles most vulnerable to automation, as the sector navigates uncertain waters ahead.