“I’m really skeptical whether the layoffs that we see currently are really due to true efficiency gains. It’s rather really a projection into AI in the sense of ‘We can use AI to make good excuses,’” Stephany said in an interview with CNBC.
Companies can essentially position themselves at the frontier of AI technology to appear innovative and competitive, and simultaneously conceal the real reasons for layoffs, according to Stephany.
“There might be various other reasons why companies are having to get rid of part of their workforce ... Duolingo or Klarna are really prime candidates for this because there has been overhiring during Corona [Covid-19 pandemic] as well,” the professor said.
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