Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: AI vs humans: Sam Altman says some companies are using AI as excuse to fire employees in Simple Termsand what it means for users..
Artificial intelligence (AI) will take our jobs – this is something we all have heard in the past few months. Companies such as Google, Amazon, and TCS have already laid off thousands of employees, citing a switch towards a more AI-driven future. However, according to OpenAI CEO, Sam Altman, AI is likely not the reason for all the job losses.
During the India AI Impact Summit 2026, the OpenAI chief reckoned that companies may be using AI as an excuse for cutting jobs, a method which he termed as “AI washing.”
He told CNBC TV18, “I don’t know what the exact percentage is, but there’s some AI washing where people are blaming AI for layoffs that they would otherwise do.”
Is AI actually to blame for job losses?
Altman hinted that many companies may be using AI as a reason for laying off workers, even if it was not the root cause for the decision. However, the OpenAI CEO did not name any company in particular. Sam also acknowledged that many jobs were in fact being impacted directly by AI. He added, “There’s some real displacement by AI of different kinds of jobs.”
Sam Altman is not the only one to make such a claim. A report from consulting firm, Challenger, Gray & Christmas, shows that approximately 55,000 layoffs were attributed directly to AI in 2025. While this sounds like a huge number, this represents less than 1 per cent of all job losses that year.
In the past year, over 1 lakh workers have lost their jobs in the IT sector alone.
A report from US nonprofit, National Bureau of Economic Research, also found that 90 per cent of executives surveyed said AI had no impact on employment in the past three years. Despite these figures, some companies, including major tech employers, have cited AI as a factor in headcount reductions.
Will AI create new jobs?
Altman reckons that while AI will impact jobs, there is also the possibility for new opportunities. He explained, “We’ll find new kinds of jobs, as we do with every tech revolution,” he added. “But I would expect that the real impact of AI doing jobs in the next few years will begin to be palpable.”
Other leaders in the AI space have expressed different views. Anthropic CEO Dario Amodei has warned that he can’t guarantee if AI will create as many jobs as it displaces. While Microsoft’s AI chief Mustafa Suleyman has signalled that all white collar jobs may be replaced by AI within the next eighteen months.
Even companies that do not focus on tech are automating tasks with AI. Livspace, a home decor startup recently fired 1,000 workers as it focusses on using AI for productive. Baker McKenzie, a law firm, is said to have laid off 10 per cent of its global workforce as it shifts towards a more AI-driven approach.
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