Michael Kratsios said some companies appear to frame planned job cuts as AI-driven because the explanation resonates better with investors and the media, while he remained optimistic about AI's long-term effect on employment.
White House Science and Technology Advisor Michael Kratsios said some companies may be overstating artificial intelligence as the reason for layoffs they likely would have made anyway, arguing that blaming AI "plays better in the press." Speaking on the "Moonshots with Peter Diamandis" podcast, Kratsios suggested the framing can also appeal to markets after Peter Diamandis said stock prices can rise when companies are seen producing more revenue with fewer workers, an assessment Kratsios said was "Precisely" right. He also criticized the broader negative messaging around AI, saying public anxiety should not be surprising if people mainly hear warnings about job losses, danger and biosecurity risks. Kratsios said he remains optimistic about AI's long-term impact on jobs. The remarks come amid a broader debate over whether AI is directly causing employment losses. OpenAI CEO Sam Altman said in February that some companies were "blaming AI for layoffs that they would otherwise do," while acknowledging there is also real displacement in some roles. Business Insider said it has tracked 17 companies, including Uber, Snap and Block, that cited AI in layoff decisions, even as some economists question the idea that AI is already driving mass job cuts.