òòò½Íø Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
How Different Uses of AI Shape Labor Demand: Evidence from France
òòò½Íø Papers and Proceedings
vol. 115,
May 2025
(pp. 62–67)
Abstract
Using French firm-level data on AI adoption from 2017–2020, we find that, first, firms adopting AI are larger and more productive and skill intensive. Second, difference-in-difference estimates reveal an increase in firm-level employment and sales after AI adoption, suggesting that the induced productivity gains allow firms to grow and outweigh potential displacement effects. Third, occupations classified in recent work as substitutable with AI expand. Fourth, AI usage is a relevant dimension of heterogeneity in the labor demand response: We find positive employment growth for certain uses (e.g., information and communications technology security) and negative for others (e.g., administrative processes).Citation
Aghion, Philippe, Simon Bunel, Xavier Jaravel, Thomas Mikaelsen, Alexandra Roulet, and Jakob Søgaard. 2025. "How Different Uses of AI Shape Labor Demand: Evidence from France." òòò½Íø Papers and Proceedings 115: 62–67. DOI: 10.1257/pandp.20251047Additional Materials
JEL Classification
- C45 Neural Networks and Related Topics
- D22 Firm Behavior: Empirical Analysis
- J23 Labor Demand
- M15 IT Management
- M51 Personnel Economics: Firm Employment Decisions; Promotions
- O32 Management of Technological Innovation and R&D