OpenAI CEO Sam Altman Addresses ‘AI Washing’ and Corporate Layoffs at India AI Impact Summit 2026

Mumbai, February 20: OpenAI CEO Sam Altman has criticised a growing corporate trend where companies attribute mass layoffs to artificial intelligence despite the technology often playing a minimal role in such decisions. Speaking on the sidelines of the India AI Impact Summit in New Delhi, Altman described the practice as "AI washing," suggesting that firms are using the narrative of technological disruption to mask routine cost-cutting and strategic restructuring.

Altman acknowledged that while AI is beginning to displace certain types of roles, many recent workforce reductions are being unfairly blamed on the technology. He noted that this trend complicates the public's understanding of AI's current capabilities. According to Altman, while the real disruption is approaching, a significant portion of current job cuts stems from factors unrelated to automation. India AI Impact Summit 2026: PM Narendra Modi Meets AI Startup CEOs To Push Mother Tongue Learning and Ethical Technology Solutions.

Defining the Rise of 'AI Washing'

The term "AI washing" is derived from "greenwashing," where entities present themselves as more technologically advanced than they truly are to satisfy investors. By attributing layoffs to AI-driven efficiencies, companies often attempt to position themselves as forward-thinking disruptors rather than businesses addressing internal issues like pandemic-era over-hiring or slowing consumer demand.

Market data supports this distinction. In January 2026, the United States recorded 108,435 job cuts, the highest monthly total since 2009. However, data from Challenger, Gray & Christmas indicates that AI was explicitly cited as the reason in only approximately 7,600 of those cases. The majority of reductions were driven by market conditions, contract losses, and internal restructuring.

Corporate Shifts and Narrative Reversals

Several high-profile technology firms have recently adjusted their narratives regarding workforce reductions. Amazon, which laid off 30,000 workers between late 2025 and early 2026, initially linked the cuts to AI transformation. However, CEO Andy Jassy later attributed the move to over-hiring and excessive management layers. Similarly, Microsoft cut over 15,000 roles in 2025 under the banner of AI transition, yet later acknowledged that overall headcount remained largely stable.

IBM has seen one of the most notable shifts in strategy. After previously announcing a hiring pause for roles AI could potentially handle, the company’s HR chief, Nickle LaMoreaux, announced plans to triple entry-level hiring in 2026. The company has moved toward overhauling job descriptions to reflect how AI assists work rather than replacing the worker entirely, particularly in junior development roles.

The Future of Job Displacement

Despite calling out current exaggerations, Altman maintained that genuine job displacement is inevitable as the technology matures. He stated that the palpable impact of AI on the global workforce will become more evident over the next few years. Industry peers, including Anthropic CEO Dario Amodei, have warned that a significant percentage of entry-level white-collar jobs could face automation within the next five years. ‘Bad Experience’: Renowned AI Researcher Sara Hooker Misses Gala Dinner With PM Narendra Modi After 4-Hour Delhi Traffic Jam.

For the moment, economists remain cautious about the immediate macroeconomic effects. Research from the Yale Budget Lab suggests that as of late 2025, there have been no significant AI-related shifts in the broader labour market. While companies like Dropbox are expanding internship programmes to leverage AI-savvy younger talent, the consensus suggests that the most profound changes to the workforce are still on the horizon.

(The above story first appeared on LatestLY on Feb 20, 2026 02:39 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).