A senior White House science and technology aide publicly criticised some companies, saying they are linking layoffs they would have made anyway to artificial intelligence (AI).
Business Insider reported on Aug. 6 that Michael Kratsios (마이클 크라치오스), director of the White House Office of Science and Technology Policy, recently appeared on a podcast and said there are cases where companies shift responsibility for layoffs to AI.
Kratsios said on the podcast “Moonshots with Peter Diamandis,” hosted by Peter Diamandis, that many companies try to blame AI for layoffs they would have made anyway or attach AI as the reason because “it plays better in the media.” When Diamandis said cutting staff and generating more revenue could also lift a company’s share price, Kratsios replied that was exactly right.
The remarks come as U.S. companies increasingly cite AI as a factor behind restructuring. Several companies, including Uber, Snap and Block, have mentioned AI in their layoff decision-making. Some economists have questioned the narrative that AI is already triggering mass layoffs. Public opinion surveys in the United States have also shown broad concern about job losses due to AI.
Kratsios also said he is optimistic about AI’s long-term impact on employment. Some jobs could be replaced by AI in the short term, but he sees it as a separate issue when companies explain all downsizing by pointing to AI.
Similar concerns have been raised in the industry. OpenAI CEO Sam Altman (샘 알트먼) said in February, “I don’t know the exact ratio, but there is some ‘AI washing’ where layoffs that would have happened anyway are blamed on AI, and on the other hand there are cases where AI actually replaces some jobs.” He meant that the impact of AI on the labour market and the issue of companies exaggerating it in their communications should be distinguished.
Kratsios also criticised what he called pessimistic narratives around AI, saying they are worsening public perceptions. If politicians and industry keep repeating only talk of job losses, risks and biological threats, people have no choice but to react more sensitively to those points, he said, adding it is not strange for public opinion around AI to sour. His comments echo criticism from some industry figures, including Nvidia CEO Jensen Huang (젠슨 황), of so-called “doomers” narratives.
The weight of the comments is also tied to Kratsios’ current position. He took the top job at the White House Office of Science and Technology Policy after Senate confirmation and is advising U.S. President Donald Trump on science and technology policy. He began his career under Peter Thiel, served in the first Trump administration, worked at Scale AI and returned to the White House after the 2024 presidential election.
At the White House, he was also involved in drawing up the Trump administration’s “AI Action Plan,” released publicly in July last year. The plan includes speeding up permitting processes for data centres and lowering the priority of states with excessive AI regulation. More recently, he also publicly criticised Moonshot AI for inappropriately distilling a popular model, “Kimi K3,” based on Anthropic’s “Fable5.”
The remarks again highlight that the actual impact of AI on the labour market and how companies explain and use it should be viewed separately. A senior official responsible for the U.S. government’s AI policy implementation publicly raised the possibility that the “AI layoffs” narrative is exaggerated, which could influence future corporate restructuring messaging and debate over AI policy.