AI Reports · Stanford Digital Economy Lab · 2026-09-21 · Research paper
How Does AI Change Labor Demand? Evidence from 41 Countries - Stanford Digital Economy Lab
Using 1.25 billion job postings and 154 million employment records from 41 countries, this study examines how generative AI adoption changes labor demand. Foreign affiliates of AI-adopting firms reduce their junior share of staff relative to comparable affiliates, mainly through growth in senior employment rather than a drop in junior roles. The authors find suggestive evidence of modest overall employment growth and productivity gains.