Thomas Unise
Despite the growing adoption of AI technologies across various industries, not a single company in New York state has officially attributed their workforce reductions to technological innovation or automation, according to state records.
New York’s Unique AI Reporting Requirement
In a pioneering move, New York became the first state to specifically track AI-related job losses when Governor Kathy Hochul directed the Department of Labor to add “technological innovation or automation” as an option on required mass layoff notification forms. Since March 2023, companies with 50 or more employees must indicate whether technology played a role in their decision to reduce staff.
The reporting mechanism, part of the Worker Adjustment and Retraining Notification (WARN) filings, offers 17 possible reasons for layoffs, including bankruptcy, merger, relocation, and now technology. Companies selecting the tech option would need to specify whether AI, robotics, or “software modernization” was responsible.
Surprising Findings
The results are striking: over 160 companies filed notices affecting nearly 28,300 workers in the 11 months since the option was added, yet none cited technology as the cause. This includes major AI adopters like Goldman Sachs, Amazon, and Morgan Stanley, which have all implemented AI tools and have publicly discussed AI’s role in workforce strategy.
Goldman Sachs, which led with more than 4,100 affected workers, had internally linked its layoffs to AI’s potential productivity gains. Amazon, with 660 affected workers in New York, had previously warned that AI benefits would lead to job cuts. Yet on official filings, companies typically selected reasons like “economic” factors instead.
Possible Explanations
Several factors might explain this discrepancy:
- Companies may be reluctant to admit replacing workers with technology due to potential reputational damage
- The affected positions in New York might not be those being replaced by AI
- Organizations might be gradually implementing AI without direct one-to-one replacement of workers
- Traditional business factors may still be the primary drivers of layoffs despite technological advances
This contrasts with an analysis by job search firm Challenger, Gray & Christmas, which found nearly 55,000 US companies attributed job cuts to AI adoption last year based on public statements.
Strengthening Reporting Requirements
New York state officials follow up with every employer to verify filing accuracy, but some lawmakers believe stronger measures are needed. State Assemblyman Harry Bronson has introduced two bills that would expand reporting requirements for AI-related job impacts and potentially tie compliance to state grants and tax breaks.
Labor economist Erica Groshen from Cornell University suggests that rather than focusing on the technology causing displacement, policymakers should require more detailed data on evolving skills and occupations to help workers make successful transitions.
Looking Forward
The New York State AFL-CIO supports Governor Hochul’s efforts but calls for “specific regulations that mandate employer accountability and transparency in AI deployment.” As AI continues to transform workplaces, more comprehensive and accurate reporting mechanisms may become essential for understanding its true impact on employment.
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