The costs and complexities of AI suggest that it is easier and more economical for larger firms to use.

Fact of the Week: Firms With More Than 1,000 Employees Are 10 Times More Like to Use AI Than Firms With 5 to 10 Employees

A report finds that firms that are 125 miles from the closest AI hotspot, defined as an area with over 1000 AI publications or patents, experienced 17 percent lower AI job growth between 2007 and 2019.

Fact of the Week: Commuting Areas Far From AI Hotspots Experienced 17 Percent Lower Growth in AI Jobs

In 2019, the AI workforce made up 0.37 percent of the total workforce in the United States, which ranked 10th out of 24 OECD nations and was only slightly higher than the OECD average of 0.34 percent.

Fact of the Week: US Ranks 10th Among OECD Countries in Share of Employees With AI-Related Skills

AI-enabled automation is positively associated with changes in occupation employment shares in a sample of sixteen European countries. 

Fact of the Week: AI-Enabled Automation Is Positively Associated With Changes in Occupation Employment Shares

A recent paper for the National Bureau of Economic Research found customer support agents using an AI tool to guide their conversations saw a nearly 14 percent increase in productivity.

Fact of the Week: Customer Support Agents Using an AI GPT Tool Saw a Nearly 14 Percent Increase in Productivity 

From 2005 to 2016, economists Jon Chung and Yong Suk Lee found that, while robots initially led to lower employment and wages for affected workers, that trend reversed as firms and workers adjusted to the broader adoption of robots in production.

Fact of the Week: Each Industrial Robot Installed in Recent Years Created Between 13 and 16 Jobs

Time-lag implementation in the regression also showed a delay of three years between the point of AI adoption and return on productivity growth, indicating an investment delay for AI that could also explain previous literature gaps.

Fact of the Week: Large Firms Implementing Artificial Intelligence Enjoyed Additional Productivity Growth Within Just Three Years

The growth of artificial intelligence has stoked fears that industries beyond manufacturing could be significantly automated. This underscores the need to study the evidence about modern automation, especially because the facts frequently contradict common concerns.

Fact of the Week: European Manufacturers Added Five New Workers for Every Robot They Deployed From 1995 to 2015

Although automation in the German manufacturing sector decreased employment by 23 percent from 1994 to 2014, these job losses were fully offset by new job opportunities in the service sector, writes John Wu in Innovation Files.

Fact of the Week: Over 13 Percent of Firms That Use Artificial Intelligence Have Expanded Their Workforce

Related

Fact of the Week: Firms With More Than 1,000 Employees Are 10 Times More Like to Use AI Than Firms With 5 to 10 Employees

Fact of the Week: Commuting Areas Far From AI Hotspots Experienced 17 Percent Lower Growth in AI Jobs

Fact of the Week: US Ranks 10th Among OECD Countries in Share of Employees With AI-Related Skills