AI and Employment: A Report Reveals Unexpected Trends

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Key Takeaways

1Nearly 90,000 job cuts related to AI are expected by May 2026, according to company announcements.

2A report from Ramp and Revelio Labs shows that companies investing in AI are increasing their workforce by 10.2%.

3Junior jobs, often threatened by AI, have increased by 12% in tech companies.

💡Why it matters — AI could exacerbate disparities between well-resourced companies and those struggling to invest, thereby changing the employment landscape.

Job Cuts Related to AI Raise Concerns

With each layoff announcement from a company, fears about job loss due to artificial intelligence intensify. Current forecasts suggest that by May 2026, approximately 90,000 jobs could be eliminated due to AI. Additionally, some estimates indicate that AI could eliminate up to 15% of jobs in the United States over the next five years. While the tech industry promises the creation of new jobs through AI, these assurances struggle to reassure, especially for younger generations questioning their job prospects after graduation.

A Report That Nuances the Dominant Discourse

A recent report published by Ramp and Revelio Labs offers a different perspective on this debate. These two entities, specializing respectively in tracking AI spending and analyzing workforce data from nearly 22,000 companies, found that companies heavily investing in AI are increasing their staff, including entry-level positions often perceived as threatened. Companies classified as "high-intensity adopters," which spend an average of $30 per employee per month on AI, recorded a 10.2% increase in their workforce.

Various Sectors Benefit from AI

This job growth is observed across various sectors such as engineering, sales, administration, customer service, finance, marketing, and sciences. The information sector, which includes software, internet, media companies, and those close to technology, experienced the highest growth among high-intensity adopters.

A Nuanced Analysis of the Data

However, this data should be interpreted with caution. It is heavily biased in favor of tech companies and those focused on intellectual work, often supported by venture capital funding and rapid growth. Therefore, it is difficult to determine whether AI is the direct cause of this increase in hiring or if it is simply present in companies already in expansion. The authors of the report admit that the document does not show that AI universally creates jobs, but it contradicts claims that AI will lead to widespread job losses.

The Impact of AI on Junior Jobs

The report also contradicts the notion that AI eliminates all junior jobs. Recent research from Goldman Sachs showed that AI eliminated about 16,000 net jobs per month last year, particularly affecting Generation Z workers and entry-level employees. However, in tech companies, the number of entry-level positions increased by 12%.

AI as an Expansion Tool

AI is not necessarily a substitute for labor but can be an expansion tool for companies. In the software and technology sector, AI can reduce production costs by automating tasks such as coding, debugging, creating internal tools, and technical documentation. These savings can drive business expansion beyond the engineering team.

Disparities Between Companies

Companies that merely purchase subscriptions or conduct pilot projects without sustained investments generally do not see an increase in their workforce. This could widen the gap between companies with the resources to transform AI adoption into real business gains and those that remain stuck at the experimental stage. In other words, companies that already have resources are the ones that will see the greatest gains. The authors of the report suggest that this gap could continue to widen, leaving less-equipped companies behind.