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The Transparency Gap: Why No Company Will Admit AI Caused Layoffs

New York state has a simple question for companies laying off workers: did artificial intelligence play a role?

Eleven months after the state added “technological innovation or automation” to its required layoff disclosure forms, the answer from every single company has been the same: no.

Over 160 companies have filed mass layoff notices in New York since March 2025. More than 28,300 workers have lost their jobs. Not one employer checked the AI box.

The First-of-Its-Kind Requirement

New York became the first state to require AI layoff disclosure in early 2025, following an order from Governor Kathy Hochul. The penalty for non-compliance is $500 per day.

The goal was straightforward: give policymakers and workers real data about how AI is affecting employment.

What the Data Shows—And Does Not

The companies that filed notices read like a who is who of AI adopters:

Goldman Sachs led all filers with 4,100 workers affected. Internally, the bank linked layoffs to AI productivity gains.

Amazon reported 660 affected workers. CEO Andy Jassy had previously warned that AI would lead to job cuts.

Morgan Stanley filed notices affecting 260 workers. A source told Bloomberg AI was a factor.

Yet on official forms, all three companies cited other reasons—typically “economic” or restructuring. None admitted AI played a role.

Two Views on Transparency

The Case for Disclosure: Worker preparation—if AI is displacing workers, people deserve to know so they can retrain. Policy foundations—lawmakers need accurate numbers to design safety nets. Accountability—companies celebrating AI gains to investors should acknowledge the human cost.

The Corporate Perspective: Companies counter that layoffs are almost never single-cause events. A firm might use AI while simultaneously dealing with declining sales and restructuring. There is also the legal and reputational calculus—checking the AI box could trigger lawsuits or negative press.

What This Means for the Future

The transparency gap revealed by New York experiment has implications beyond one state. Without accurate data, lawmakers cannot design appropriate responses. For now, the silence speaks volumes. AI may be transforming work, but on paper, it has nothing to do with job loss.

Sources: WIRED, Reuters, Bloomberg, NY Department of Labor