OpenAI CEO Sam Altman warned that some companies are engaging in ‘AI washing’ by falsely attributing layoffs to AI. A recent study found that nearly 90% of executives said AI had no impact on workplace employment over the past three years.
Snap CEO Evan Spiegel announced in April that the company would lay off about 1,000 staff members, or about 16% of its workforce, citing AI as a reason. Around 40% of employers expect to follow Snap’s lead in reducing staff due to AI, according to the 2025 World Economic Forum Future of Jobs Report.
Martha Gimbel from the Yale Budget Lab stated that there are currently no significant macroeconomic effects from AI on labor. She emphasized, “No matter which way you look at the data, at this exact moment, it just doesn’t seem like there’s major macroeconomic effects here.” This aligns with Altman’s concerns regarding misleading claims.
AI washing is defined as false, misleading, or exaggerated claims about AI adoption and impact. The SEC, DOJ, and FTC have launched enforcement actions targeting companies that overstate AI capabilities. The number of securities class action lawsuits related to AI disclosures has been trending upwards, with 16 cases filed in 2025.
Key statistics:
- 50% of entry-level office jobs could be wiped out by AI according to Anthropic CEO Dario Amodei.
- Revised job gains reported last week were at 181,000 despite GDP tracking up 3.7%.
- 92% of S&P 500 market value will comprise intangible assets, including AI systems, by 2025.
Sid Yenamandra noted that “AI washing occurs when vendors market a capability as AI-based even though it is primarily rules-based automation or conventional analytics.” Babu Sivadasan added that genuine AI goes beyond task automation and enables real-time connected intelligence.
The conversation surrounding AI washing continues to grow as companies navigate the implications of AI governance and job displacement. The trend raises questions about market credibility and the true impact of AI on various sectors.
