A hot potato: We're used to hearing stories about AI taking admin, call center, and similar jobs, but it's not just white-collar workers who are at risk. In New York, 12 nurses were laid off on Sunday and replaced by AI-powered software, some of whom had worked at the hospital for decades. The move came not long after the city's nurses went on strike and won a three-year contract. It's also led to warnings about the quality of care the AI will offer.
According to the New York State Nurses Association (NYSNA), the layoffs, made by the Montefiore Medical Center in the Bronx, were a direct result of the AI-powered software provided by Datavant. Montefiore described it as a nonclinical program that helps facilitate the paperwork process.
The software replaces 12 utilization review nurses who examine patient records and demonstrate to insurers that the care provided is medically necessary and eligible for coverage.
AI-driven job losses spark outrage at the best of times, but what makes this incident even more controversial is the timing. On January 10, a 41-day nurses' strike began across several hospitals in New York. It led to a three-year contract, which included safeguards against AI.
"We are outraged about these layoffs because these dedicated nurses are being replaced by AI," said Shaiju Kalathil, a nurse at Montefiore and a union executive committee member. "This is a violation of the contract that we recently won by going on strike. It should also concern every practitioner and patient who cares about the future of healthcare and the quality of care they receive."
The NYSNA has also highlighted Datavant's reported ties to Palantir and a $900,000 payment to settle a class-action lawsuit over a 2024 data breach that affected thousands of people.
Marilyn Shuler, one of the affected nurses, said that when she and her co-workers returned to work after the strike, their workflows had changed without explanation. The union was notified, and it contacted management. Around three months later, all 12 nurses in the department received 45-day notices.
Shuler told The Guardian that her role often involves complex discussions about issues such as medication changes and discharge planning, which would be difficult to handle using AI.
"AI should be a tool used in conjunction with the clinical expert, not to replace," she said. "We're not against technology. There are several advances in healthcare utilizing technology. The issue is with new tech without evidence."
Unsurprisingly, the hospital has a different view from the union. "As is often the case, the claims by NYSNA are inaccurate and misleading," said Joe Solmonese, senior vice-president for government relations and strategic communications at Montefiore. "What is true is that we are always investing in new technology to ensure the best care and outcomes for our patients and will continue to do so for the betterment of the people we serve."
There have been several stories recently about AI execs and analysts claiming the technology's impact on jobs has been much less severe than expected – or there's been no impact at all – despite all the evidence to the contrary. The good news is that more companies are now rehiring workers they replaced with AI after the automation failed to deliver.