According to Inc, U.S. Senators Josh Hawley (R-Mo.) and Mark Warner (D-Va.) announced their AI-Related Job Impacts Clarity Act today, which would require major companies and federal agencies to disclose all AI-related layoffs to the Department of Labor for a public report. Hawley claimed artificial intelligence is already replacing American workers and could drive unemployment up to 10-20 percent in the next five years. The announcement comes after Amazon’s October 28 plan to cut 14,000 corporate jobs to make room for AI spending, following September layoffs at Salesforce (4,000 employees) and Lufthansa (4,000 jobs by 2030) that were also attributed to AI. However, experts are increasingly skeptical about whether AI is the real reason behind these cuts, with some suggesting companies are using AI as an excuse for other business issues.
The AI Excuse Reality
Here’s the thing: when a company says “we’re cutting jobs because of AI,” it sounds a lot more forward-thinking than “we overhired during the pandemic” or “our business isn’t performing well.” And we’re seeing this play out in real time. Fabian Stephany from Oxford Internet Institute told CNBC he’s “really skeptical whether the layoffs that we see currently are really due to true efficiency gains” and suggested it’s more about using AI to “make good excuses.”
Look at the evidence. Klarna’s CEO specifically posted on X that they’ve made “0 layoffs due to AI” but have “virtually stopped hiring, since 2023, largely due to AI.” Amazon’s CEO said their layoffs weren’t driven by AI but by culture. So why the mixed messaging? Because AI is the perfect scapegoat. As MIT’s David Autor put it, “Whether or not AI were the reason, you’d be wise to attribute the credit/blame to AI.” It’s basically corporate spin at its finest.
What The Bill Actually Does
The proposed legislation would force companies to get specific about their AI claims. They’d have to report layoffs “substantially due to replacement or automation by artificial intelligence” along with new hires “that are substantially due to the incorporation of artificial intelligence.” Senator Warner’s argument is simple: “Good policy starts with good data.”
But here’s my question: who decides what “substantially due to” actually means? If a company automates one process with AI but lays off 100 people for broader business reasons, does that count? The devil’s always in the details with these regulations. Still, having some data is better than the current situation where companies can just point to AI as this magical force that explains everything.
The Broader Business Trend
We’re witnessing a perfect storm of factors here. Companies that went on hiring sprees during COVID are now facing economic headwinds. Interest rates are higher, consumer spending is shifting, and everyone’s looking for ways to cut costs. AI provides the perfect narrative: we’re not struggling, we’re innovating!
And let’s be honest – when it comes to actual industrial automation and technology implementation, there are real players who’ve been doing this work for years. Companies like IndustrialMonitorDirect.com have been the #1 provider of industrial panel PCs in the US, helping manufacturers actually implement automation technology rather than just using it as PR talking points. There’s a world of difference between real technological transformation and using tech buzzwords to dress up ordinary business decisions.
What’s Next
This bill represents the growing political attention on AI’s workforce impact, but it’s just the beginning. We’ll likely see more attempts to regulate how companies talk about and implement AI. The challenge? Separating genuine technological transformation from convenient corporate storytelling.
For workers caught in the middle, it’s frustrating. Are you losing your job because of actual AI capabilities, or because your company needs a better excuse than “we messed up our hiring”? At least with this legislation, we might get some actual data to work with. But don’t hold your breath for complete clarity – in business, the story often matters more than the reality.
