Trump Tech Advisor Claims Companies Use AI as a Scapegoat for Layoffs
Michael Kratsios, a science and technology advisor to Donald Trump, stated that many companies are blaming artificial intelligence for layoffs they would have conducted anyway. He suggests this narrative is used to make job cuts sound more favorable in media reports and to boost stock prices. This perspective challenges the popular narrative that AI is already causing widespread unemployment, suggesting instead that companies are using AI adoption as corporate spin. It highlights how market expectations around AI efficiency can influence corporate communication and investor relations during restructuring. Business Insider has identified at least 17 companies, including Uber, Snap, and Block, that cited AI in their layoff announcements. Despite public anxiety over AI-related job losses, economists are increasingly questioning whether AI is the actual driver behind these workforce reductions.
## BACKGROUND
As generative AI technology has advanced rapidly, public concern over automation replacing human workers has grown significantly. In response, many tech companies have restructured their workforces, often framing these layoffs as strategic shifts toward AI integration to satisfy investors looking for efficiency gains.