tech
New data throws a wrench into debate that AI is causing layoffs
New research has found that companies spending the most on AI aren't slashing jobs; they're actually hiring faster than their peers.
TL;DR
- Companies spending the most on AI are actually hiring faster than their peers, challenging fears of a white-collar bloodbath.
- A study tracking US firms found that major AI adopters increased their head count after implementing the technology, including entry-level jobs.
- While AI adoption correlates with hiring growth, these companies were also larger, VC-backed, and faster-growing.
- Some tech leaders suggest AI is being used as a scapegoat for job cuts, with CEOs like Jensen Huang and Sam Altman expressing skepticism about AI-driven layoffs.
- Firms with high AI spending saw significant head count increases, particularly in sectors like software, internet, media, and tech-adjacent companies.
- The study advises young job seekers to choose firms that are actively using AI when selecting between otherwise similar companies.