Companies embracing AI the most are hiring more people - including entry-level, report finds

· Source: News and Advice on the World's Latest Innovations | ZDNET · Field: Business & Management — Human Resources & Workforce Development, Corporate Strategy & Leadership · Depth: Fundamental Awareness, short

Summary

A new study by Ramp and Revelio Labs challenges fears about AI-driven job loss. It finds that companies intensely adopting AI are significantly increasing their workforce. These "high-intensity adopters" grew their headcount by 10.2% in the two years following AI integration. This growth is concentrated among firms spending an average of \$33.67 per person monthly on AI services. Low-intensity adopters, by contrast, spent only \$2.78. Crucially, the report also indicates a 12% increase in entry-level hiring within these AI-embracing companies. This suggests opportunities for recent graduates skilled in AI tools. The study, based on records from over 21,000 US firms, highlights a risk for smaller businesses. These firms are less likely to be high-intensity adopters and could face competitive disadvantages.

Key takeaway

For Directors of AI/ML evaluating strategic technology investments, this report indicates that deep, sustained AI adoption correlates with organizational growth. If your company considers AI integration, prioritize long-term, high-intensity investment over short-term pilots. This drives headcount expansion and competitive advantage. Actively seek and hire recent graduates proficient in AI tools. They represent a growing talent pool for entry-level roles within high-intensity AI environments.

Key insights

High-intensity AI adoption correlates with significant headcount growth, including entry-level positions, challenging job displacement narratives.

Principles

In practice

Topics

Best for: CTO, VP of Engineering/Data, Executive, Director of AI/ML, HR Professional, Consultant

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Editorial summary, takeaway, and curation by AIssential. Original article published by News and Advice on the World's Latest Innovations | ZDNET.