Many Analysts Expected AI To Replace Workers. New Company Data Tells A Different Story.

Businesses making the largest investments in artificial intelligence expanded their workforces faster than comparable companies after adopting the technology, according to new research released Tuesday.

The findings add fresh data to one of the biggest questions surrounding AI as companies continue investing in the technology.

The report, titled “A New Look at AI’s Impact on Jobs: Firm-Level AI Spending and Workforce Adjustment,” analyzed AI spending across 21,599 U.S. companies by combining corporate spending data with workforce information from Revelio Labs.

Researchers found companies classified as high-intensity AI adopters increased overall headcount by 10.2% during the two years following adoption, while entry-level hiring grew 12% over the same period.

Researchers categorized businesses as either high- or low-intensity AI adopters based on AI spending per employee during the first three months after adoption. Companies making smaller AI investments showed no statistically significant change in employment compared with similar firms, the report said.

The study found AI adoption was concentrated among larger businesses that were more likely to employ engineering talent, receive venture capital funding and already be growing faster than non-adopters. Those companies continued to outpace comparable firms after implementing AI, according to the report.

“The research until now has relied on datasets that are available but not appropriate for these questions, resulting in the general public getting unreliable answers on how AI will actually affect our economy,” Ara Kharazian, lead economist at Ramp, said in the report.

The report also examined smaller businesses. It found they were less likely than larger organizations to adopt AI tools. However, small companies that did implement AI generally invested more intensively, with researchers finding the business impact was greater because the technology could provide capabilities that previously required larger teams or additional hiring.

“There are likely many small businesses that would benefit from AI but do not use it today, missing out on meaningful growth,” Kharazian said. “Our economy pays those costs when firms remain on the slower growth path. The challenge now is helping more businesses connect to the networks, tools and long-term investment needed to use AI effectively.”

The findings arrive as economists continue to debate AI’s effect on employment. A recent European Central Bank study found that AI’s overall impact on employment and wages has so far remained limited despite rapid adoption across industries. The researchers said productivity gains have been more evident than broad labor market disruption, although some occupations face greater exposure than others.

Hiring trends among major employers have also remained mixed rather than uniform. Earlier this month, Bank of America said it would welcome roughly 4,000 interns and campus recruits despite expanding its use of AI tools across parts of the business, Reuters reported. The bank said technology was changing how employees work rather than replacing the need for graduate hiring.

The broader discussion has also drawn attention from policymakers and labor economists. NBC News reported that businesses across industries are incorporating AI into day-to-day operations while researchers continue examining how the technology is reshaping individual roles and workplace skills instead of producing uniform employment outcomes across the economy.

The Ramp report adds another set of firm-level data to that discussion but stops short of concluding AI itself caused employment growth. The researchers noted companies making the largest AI investments also tended to be larger, venture-backed businesses that were already expanding faster than their peers before adopting the technology. Much of the hiring growth identified in the study occurred in the information sector, including software, internet, media and technology companies, according to reporting by the Financial Times.

Alongside the report, Ramp announced a partnership with Meta Small Business to help smaller companies better understand and implement AI technologies. The initiative aims to improve awareness of adoption challenges and connect businesses using Meta’s platforms with tools and resources that support AI implementation.