Jensen Huang has some pointed words for leaders who blame company layoffs on artificial intelligence.
“I think the narrative that connects AI to job loss, for many of the CEOs that are doing it, is just too lazy,” the Nvidia cofounder and CEO said in an interview with Channel NewsAsia. “AI has just arrived. How is it possible they’re already losing jobs? How is it possible that AI became productive and useful only six months ago, and they were somehow laying people off two years ago because of AI?
“It doesn’t make any sense,” Huang added. “It was just a way for them to sound smart, and I really hate that.”
While Huang didn’t name-drop any specific CEOs or companies, AI-linked layoffs have permeated several industries in recent weeks and months. Standard Chartered CEO Bill Winters received backlash when he announced the company would cut 7,000 jobs over the next four years to replace “lower-value human capital” with tech. Just last week, Meta laid off 10% of its workforce to offset heavy spend on AI initiatives. One report from outplacement and executive coaching firm Challenger, Gray & Christmas found that AI drove 25% of job cuts in March.
Still, Huang is not convinced by leaders who blame layoffs entirely on the advent of AI. “I think we’re scaring people, and that’s irresponsible,” he said. “I think we should tell a balanced story, a balanced narrative about the potential of this technology.”
Huang isn’t the only one pushing back on the existing narrative. Labor experts have said for months that AI has been used as a scapegoat to justify layoffs that may really be happening for more pedestrian reasons, such as poor profit margins. An in-depth analysis published last October by the Brookings Institution and Yale University’s Budget Lab found that the proportion of jobs that are at high risk of being replaced by AI had remained fairly steady since ChatGPT’s launch in 2022.
Either way, corporations are excitedly adopting AI tools to automate tasks and maximize profits. According to a new survey by consulting firm Mercer, 99% of CEOs are prepared for AI-driven layoffs in the short term. Most affected by AI’s impact on the workforce are young workers who are just starting their careers. And a recent report by consulting firm Oliver Wyman found that the share of CEOs planning to cut junior roles over the next two years more than doubled, jumping from 17% to 43%.
In the interview, Huang returned to a point he made in past talks and interviews: that people are not going to lose their jobs to AI, but rather to those who know how to better use AI. “I would say to the people who are worried about losing their jobs to AI, to learn AI,” Huang said.
“It’s more likely that AI will elevate your job,” he continued. “Try to engage [in] it. Don’t be afraid of it. Of course, the industry has to be really thoughtful about building AI in a safe way and a guardrail way and to make sure that it’s deployed in a proper way.”
As Huang sees it, AI might change the way people work, but it shouldn’t be used as an excuse behind every round of layoffs. And while the rise of AI is creating anxiety among workers, he believes the people who will thrive are those who learn to work with it instead of fearing it. “Everybody has to be part of this,” he concluded.
