Despite widespread adoption of artificial intelligence (AI) in business operations, no company operating in New York state has reported AI as a direct cause of layoffs in mandatory filings with the Department of Labor. This finding, from a review of over 750 layoff notices affecting nearly 28,300 workers since March, underscores a disconnect between public narratives and documented workforce reductions.
The New York Mandate & Corporate Silence
Last year, New York Governor Kathy Hochul mandated that businesses with 50 or more employees disclose whether technological innovation or automation—including AI—contributed to mass layoffs. The goal was simple: gain clarity on the real-world impact of AI on employment. As of January, however, no employer selected this option on WARN (Worker Adjustment and Retraining Notification) filings.
This isn’t to say companies aren’t using AI to streamline operations. Major corporations like Amazon, Goldman Sachs, and Morgan Stanley have openly discussed the productivity gains from AI. But few are willing to explicitly link job cuts to automation, perhaps due to reputational concerns or the difficulty of isolating AI’s impact from broader economic factors.
Why This Matters: The Data Gap
The lack of transparency creates a significant data gap. Economists struggle to pinpoint AI’s influence on layoffs because companies reorganize slowly and often attribute cuts to vague “economic restructuring.” The New York initiative aimed to fix this, but the results suggest employers may be avoiding the question.
This hesitation raises critical questions: Are companies intentionally obscuring AI’s role? Or are traditional factors like economic downturns still the primary drivers of layoffs? The truth likely lies somewhere in between.
Beyond New York: A National Trend
Nationally, over 55,000 US companies attributed job cuts to AI adoption last year, according to Challenger, Gray & Christmas. Yet, this figure comes from public statements—not legally mandated filings like those in New York. The discrepancy suggests companies may be more forthcoming in voluntary disclosures than in formal reports.
Accountability and Future Regulation
New York’s Department of Labor verifies WARN filings, with companies facing fines for noncompliance. Governor Hochul’s administration emphasizes the need for honest reporting to support displaced workers. However, some experts argue for more stringent rules.
The New York State AFL-CIO supports increased employer accountability, while state lawmakers are considering bills that would require businesses to report AI-related job impacts annually. One proposal even suggests withholding state grants and tax breaks from non-compliant companies.
The Bigger Picture: Skills Evolution
Labor economist Erica Groshen argues that the focus should shift from blaming AI to preparing workers for the future of work. “Frankly, do we really care if someone is displaced by AI, or just the normal competitive marketplace?” she asks. The key is providing workers with the skills needed to transition into new roles, not just tracking job losses.
In conclusion: While AI is undoubtedly reshaping the labor market, companies remain reluctant to acknowledge its direct impact on layoffs in legally binding filings. New York’s experiment highlights the challenges of quantifying AI’s influence and underscores the need for proactive policies that focus on workforce adaptation rather than simply tracking job displacement.
