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

Philippe Aghion (), Simon Bunel, Xavier Jaravel (), Thomas Mikaelsen, Alexandra Roulet and Jakob Søgaard
Additional contact information
Philippe Aghion: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CdF (institution) - Collège de France
Simon Bunel: INSEE - Institut national de la statistique et des études économiques (INSEE), Centre de recherche de la Banque de France - Banque de France, CdF (institution) - Collège de France
Xavier Jaravel: LSE - London School of Economics and Political Science, CEPR - Center for Economic Policy Research
Thomas Mikaelsen: Stockholm University
Alexandra Roulet: CEPR - Center for Economic Policy Research, INSEAD - Institut Européen d'administration des Affaires
Jakob Søgaard: UCPH - University of Copenhagen = Københavns Universitet

PSE-Ecole d'économie de Paris (Postprint) from HAL

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).

Date: 2025-05
References: Add references at CitEc
Citations:

Published in American Economic Review Papers and Proceedings, 2025, 115, pp.62-67. ⟨10.1257/pandp.20251047⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:pseptp:halshs-05144088

DOI: 10.1257/pandp.20251047

Access Statistics for this paper

More papers in PSE-Ecole d'économie de Paris (Postprint) from HAL
Bibliographic data for series maintained by Caroline Bauer ().