Twelve utilisation review nurses at Montefiore hospital in the Bronx were laid off after the hospital introduced AI-powered software, according to their union, which says the move effectively replaced experienced staff with automation. The nurses and their union argue this matters beyond one workplace dispute because it raises wider concerns about patient care, transparency and whether hospitals are using AI to cut costs in ways that could weaken clinical judgement and accountability.

The New York State Nurses Association says the layoffs may be among the first AI-related cases it handles and claims they breach protections on AI that were included in contracts won after a major New York City nurses’ strike in January 2026. Marilyn Shuler, who had worked at Montefiore for 39 years, said staff noticed unexplained workflow changes after returning from the strike in February, and all 12 nurses later received 45-day redundancy notices on 28 May. Montefiore did not address the layoffs directly but said the technology was being used in a non-clinical paperwork programme and accused the union of making misleading claims.