White House advisor says companies are blaming AI for layoffs because 'it plays better in the press'
A top Trump administration advisor suggests that companies are using AI as a convenient scapegoat to justify layoffs that were already planned. The advisor argues that blaming AI helps companies improve their public image and stock performance during workforce reductions.
Why it matters
This highlights the growing trend of 'AI-washing' in corporate communications, where businesses leverage the hype surrounding AI to mask underlying financial or operational decisions.
Michael Kratsios, a top advisor to President Donald Trump, said it's not surprising that AI has a PR problem. Daniel Heuer/Bloomberg via Getty Images A top advisor to President Donald Trump questioned why companies are blaming AI for layoffs. Michael Kratsios said companies were citing AI "because it plays better in the press." More broadly, Kratsios said, given the narratives around AI, "it shouldn't surprise us that the PR is bad." A top Trump official says some companies are using AI as a heat shield for layoffs. "I think like a lot of folks these days like when they're doing a layoff that they would have done anyway, just like to assign it or blame it to AI because it plays better in the press," Michael Kratsios, President Donald Trump's science and technology advisor, said during a recent episode of the "Moonshots with Peter Diamandis" podcast.
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