New York State Requires Companies to Disclose AI-Related Job Losses, But None Have Told the Truth
A year ago, New York state made a move to shed light on how companies are handling layoffs in the face of technological innovation and automation. Under new rules, businesses with 50 or more employees must now provide an explanation for job losses when filing paperwork with the state. One of the options they can choose from is "technological innovation or automation." And while it's been a year since this option was added to the required question on Worker Adjustment and Retraining Notification (WARN) filings, none of the major companies in New York have admitted to using AI as the reason for their workforce cuts.
Over 160 large companies have filed notices of mass layoffs since last March. However, not a single one has attributed its job loss to technological innovation or automation. This is despite many companies celebrating offloading repetitive tasks such as customer service, sales, and accounting to AI systems over the past couple of years.
Governor Kathy Hochul ordered the New York Department of Labor to ask whether AI had been the impetus for layoffs. To achieve this, she added a new option to WARN filings, which also includes "bankruptcy," "merger," "relocation," and "other." The goal is for companies to provide more information about how automation or technological innovation led to job losses.
However, despite Governor Hochul's efforts, it seems like the major players are dodging this question. Companies such as Amazon, Goldman Sachs, and Morgan Stanley have not admitted to using AI in their layoffs. Some of these companies even claimed that the purpose was economic restructuring, relocation, or bankruptcy rather than automation or technological innovation.
It is believed that only employees outside of New York might be pushed out by AI. According to an analysis by job search firm Challenger, Gray & Christmas, nearly 55,000 US companies attributed job cuts to adoption of AI last year.
As some lawmakers and labor experts are pushing for more regulations on the matter, others believe that it's time to provide a better explanation of how automation affects jobs.
A year ago, New York state made a move to shed light on how companies are handling layoffs in the face of technological innovation and automation. Under new rules, businesses with 50 or more employees must now provide an explanation for job losses when filing paperwork with the state. One of the options they can choose from is "technological innovation or automation." And while it's been a year since this option was added to the required question on Worker Adjustment and Retraining Notification (WARN) filings, none of the major companies in New York have admitted to using AI as the reason for their workforce cuts.
Over 160 large companies have filed notices of mass layoffs since last March. However, not a single one has attributed its job loss to technological innovation or automation. This is despite many companies celebrating offloading repetitive tasks such as customer service, sales, and accounting to AI systems over the past couple of years.
Governor Kathy Hochul ordered the New York Department of Labor to ask whether AI had been the impetus for layoffs. To achieve this, she added a new option to WARN filings, which also includes "bankruptcy," "merger," "relocation," and "other." The goal is for companies to provide more information about how automation or technological innovation led to job losses.
However, despite Governor Hochul's efforts, it seems like the major players are dodging this question. Companies such as Amazon, Goldman Sachs, and Morgan Stanley have not admitted to using AI in their layoffs. Some of these companies even claimed that the purpose was economic restructuring, relocation, or bankruptcy rather than automation or technological innovation.
It is believed that only employees outside of New York might be pushed out by AI. According to an analysis by job search firm Challenger, Gray & Christmas, nearly 55,000 US companies attributed job cuts to adoption of AI last year.
As some lawmakers and labor experts are pushing for more regulations on the matter, others believe that it's time to provide a better explanation of how automation affects jobs.