How Different Uses of AI Shape Labor Demand: Evidence from France

Philippe Aghion, Simon Bunel, Xavier Jaravel, Thomas Mikaelsen, Alexandra Roulet and Jakob Søgaard

AEA Papers and Proceedings, 2025, vol. 115, 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).

JEL-codes: C45 D22 J23 M15 M51 O32 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1257/pandp.20251047

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