Comment by johnfn

In this case, yes, a bunch of college students probably don't want to hear that AI is taking their job. Probably good to read the room, and it is used with your meaning.

But I also think there's an alternate meaning which is "this is not the correct time for this" (with an implicit "there will be a better time"). If your friend is upset they got laid off at their job, it's not the right time to start telling them about your promotion. Read the room, man! You can wait.