Companies that invest heavily in artificial intelligence (AI) technologies tend to increase their workforce at a faster rate than peers with lower AI investment, according to new research analyzing nearly 22,000 U.S. firms. The study, conducted by researchers at US tech start-ups Ramp and Revelio Labs, found that organizations deploying generative AI intensively experienced an average 10.2 percent rise in white-collar employment in the two years following adoption, with notable growth across various job roles and seniority levels, including a 12 percent increase among entry-level positions.
In contrast, companies adopting AI at lower intensities—defined as the bottom two-thirds of AI spending per worker—showed no significant headcount changes compared to a control group. These findings challenge widespread predictions that AI will broadly reduce employment and instead suggest that substantial AI adoption, coupled with sufficient investment, may drive workforce expansion. Ara Kharazian, chief economist at Ramp and co-author of the study, emphasized that the employment gains tend to materialize only after a six- to twelve-month learning period and beyond a minimum spending threshold. “You only get these gains if you are a high-intensity adopter, and that typically comes with a decent amount of investment, beyond a couple of dollars a month on ChatGPT,” he noted.
The research methodology involved linking Ramp’s payment data, which tracks company expenditures on AI vendors, with Revelio Labs’ workforce records derived from public online profiles such as LinkedIn. To account for underlying differences among firms, the study compared early high-intensity AI adopters—often more technical, higher-paying, and more likely to have venture capital backing—with companies that adopted AI at later stages.
Despite the overall positive association between heavy AI use and hiring growth, some labor economists urge caution in interpreting the results. One expert noted that smaller, fast-growing startups may be driving both higher AI adoption and workforce expansion, making it difficult to isolate the specific impact of AI. Additionally, Kharazian acknowledged that nearly all observed job increases were concentrated within the technology sector, leaving the broader labor market effects less clear.
Academic studies on AI’s influence on employment have produced mixed conclusions. A recent paper by Harvard economists found that while senior roles remained largely unaffected, junior employment tended to decline among AI adopters. Meanwhile, some major technology companies have linked AI deployment to workforce reductions. Oracle has cut approximately 21,000 jobs over the past year and indicated that AI use could lead to further job cuts. Similarly, firms such as Snap, Block, and Cisco have cited AI-driven efficiencies as factors contributing to significant layoffs.
The findings underscore a nuanced relationship between AI adoption and employment, highlighting that substantial investment and effective integration may be critical factors determining whether AI supports job growth or contributes to job displacement.
