In early 2026, a new business script is reaching a higher volume: “We are downsizing due to the ability of AI to perform the task.” According to a report, economists and labour analysts are countering, calling it AI-washing – the deployment of AI to serve as a handy excuse to make cost-cuts.The figures are the reasons why the story is memorable. Tens of thousands of job losses in the US in 2025 are going to be counted as being AI-related, but it will be a very small portion of overall layoffs. Analysis estimates AI to be circa 4.5 percent of the 2025 job losses, which is substantial, but by no means the “AI took over everyone” narrative.Meanwhile, AI tools are gaining momentum, and businesses are purchasing them in large numbers. Enterprise “agent” platforms do not just answer questions, but now automate pieces of work. The reality of the tools, coupled with ambiguous layoff allegations, is precisely where AI-washing comes in.An organisation declares a reorganisation. It refers to the efficiency of AI or automation. Investors get to hear about productivity rather than over-hiring and stagnated growth. Customers are served with innovation rather than service cuts.Recent reporting indicates that some companies are banking on the AI line despite not having well-developed systems to take the place of the departing people. Another tell, which is a perception of the trend, is that executives will tend to discuss what AI will accomplish, not what it does currently.This does not imply that AI does not affect anything. It means the label is being used as a catch-all – even in cases where the actual driver is known: profit targets, re-organisations, duplication of functions or moving work to cheaper suppliers.It peddles progress to investors. Leaders understand that the story is important. When a company positions cuts as an upgrade to AI, it appears forward-moving and decisive rather than reactive. Discussion that builds on tracking shows that AI layoffs remain minor by comparison with the overall reduction, but the message is still compelling.It gives executives cover. The phrase AI made us faster sounds strategic. We missed targets, which does not sound good. According to reports on AI-washing, some leaders have incentives to portray layoffs as technological advancements rather than financial or management decisions.It is the same as what companies are purchasing. Coverage of significant data-platform alliances over the last week will allow employees to ask questions of the company’s data in natural language and run controlled agents on top of it. Simultaneously, enterprise agent platforms are launching under the brand name of AI co-workers, which are operated across business systems with permissions and limits.