Raw SignalOct 1, 20261 min read1 source

How Does AI Change Labor Demand? Evidence from 41 Countries - Stanford Digital Economy Lab

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Stanford Digital Economy Lab’s working paper, “How Does AI Change Labor Demand?

Evidence from 41 Countries,” examines generative AI adoption and labor demand using 1.25 billion job postings and 154 million employment records across 41 countries. The authors infer adoption from job advertisements involving generative AI use and use an instrumented event study to compare foreign affiliates of AI-adopting companies with comparable control affiliates.

The study reports that adopting affiliates reduce the junior share of their workforce relative to controls. The decline primarily comes from growth in senior employment rather than a fall in junior employment; the authors also describe suggestive evidence of modest overall employment growth. Senior employment shifts toward AI-exposed occupations, while point estimates suggest juniors shift away from them. The authors’ model-based decomposition offers suggestive evidence of modest productivity gains. These are reported findings and estimates, not proof that AI adoption preserves jobs in every firm or labor market.

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  1. 1digitaleconomy.stanford.edu/publication/how-does-ai-change-labor-demand
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