While headlines frequently cite artificial intelligence (AI) as the catalyst for recent workforce reductions, economist Justin Wolfers argues that the data tells a different story: one of infrastructure investment rather than human displacement.

The AI Layoff Myth

Addressing the recent surge in corporate downsizing, Wolfers suggests that the technology is currently serving as a shield for standard management decisions. “So the layoffs right now, very few of them probably are coming from AI.

This is a fairly convenient excuse,” Wolfers noted. He argues that while companies may point to automation, the actual integration of AI into business workflows remains in its infancy, with a vast majority of U.S. businesses yet to adopt the technology.

"If you remember when the ATM was first invented… you would think we fire a lot of bank tellers… But… the number of bank tellers didn't fall. That's because people in those jobs adapted." And perhaps there's a lesson in this story for how we adapt to AI. pic.twitter.com/DzFenpNOzL

— Justin Wolfers (@JustinWolfers) February 8, 2026

Bricks Over Brains

The current economic “boom” attributed to AI is less about software efficiency and more about physical construction.

According to recent data, nearly half of the past year's economic growth is