Michael Kratsios, a top advisor to President Donald Trump, stated that some companies are using artificial intelligence as a justification for layoffs they would have made regardless, as it is perceived more favorably by the press and can boost stock prices.
The comments highlight a growing debate about the true impact of AI on employment, suggesting that corporate justifications for layoffs may be influenced by public perception and market reactions rather than solely by technological displacement.
Michael Kratsios, a top advisor to President Donald Trump, suggested that some companies are using artificial intelligence as a public relations tool to justify layoffs they would have undertaken anyway. Kratsios stated that blaming AI for job cuts is a strategy because it is better received by the press and can lead to stock price increases, an assessment that host Peter Diamandis agreed with.
Kratsios's comments echo sentiments from other industry leaders, including OpenAI CEO Sam Altman, who has also noted the phenomenon of companies citing AI for layoffs. Business Insider has reported on 17 companies, such as Uber, Snap, and Block, that have publicly linked AI to their layoff decisions, even as economists question the extent to which AI is currently causing mass job displacement.
Despite the concerns about AI-related job losses, Kratsios expressed a generally optimistic long-term outlook on AI's impact on the workforce. He also criticized what he termed 'doomers' within the industry and political spheres whose focus on potential risks like job losses and bio-weapons contributes to public skepticism about AI. Kratsios, who advises President Trump on science and technology policy, previously worked for Peter Thiel and at Scale AI before returning to the White House.