Mind the Gap: AI Adoption in Europe and the U.S

Alexander Bick, Adam Blandin, David Deming, Nicola Fuchs-Schündeln and Jonas Jessen
Authors registered in the RePEc Author Service: Nicola Fuchs-Schuendeln

No 34995, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper combines international evidence from worker and firm surveys conducted in 2025 and 2026 to document large gaps in AI adoption, both between the US and Europe and across European countries. Cross-country differences in worker demographics and firm composition account for an important share of these gaps. AI adoption, within and across countries, is also closely linked to firm personnel management practices and whether firms actively encourage AI use by workers. Micro-level evidence suggests that AI generates meaningful time savings for many workers. At the macro level, in recent years industries with higher AI adoption rates have experienced faster productivity growth. While we do not establish causality, this relationship is statistically significant and similar in magnitude in Europe and the US. We do not find clear evidence that industry-level AI adoption is associated with employment changes. We discuss limitations of existing data and outline priorities for future data collection to better assess the productivity and labor market effects of AI.

JEL-codes: J2 O3 (search for similar items in EconPapers)
Date: 2026-03
New Economics Papers: this item is included in nep-hrm
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Working Paper: Mind the Gap: AI Adoption in Europe and the US (2026)
Working Paper: Mind the Gap: AI Adoption in Europe and the U.S (2026)
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