U.S.-based companies announced more than 97,000 planned job cuts in May, marking the highest level for the month since the pandemic-era layoffs of 2020, according to Challenger, Gray & Christmas. Employers cited AI as the primary reason for 40% of those announced job cuts.
Still, some experts caution against assuming every layoff attributed to AI is the result of a machine replacing a worker.
“Roles involving repetitive tasks that primarily require recognition and interpretation of patterns can utilize AI with greater efficiency,” Chris Hutchins, founder and CEO of Hutchins Data Strategy Consultants, told Moneywise.“If AI is assigned blame after job cuts that proceed beyond these roles, then the underlying cause is likely something other than AI.”
In other words, while companies are increasingly pointing to AI as a reason for layoffs, the technology’s role in job cuts may be more complicated than the headlines suggest.
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