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

Author

Listed:
  • Philippe Aghion
  • Simon Bunel
  • Xavier Jaravel
  • Thomas Mikaelsen
  • Alexandra Roulet
  • Jakob Søgaard

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).

Suggested Citation

  • Philippe Aghion & Simon Bunel & Xavier Jaravel & Thomas Mikaelsen & Alexandra Roulet & Jakob Søgaard, 2025. "How Different Uses of AI Shape Labor Demand: Evidence from France," AEA Papers and Proceedings, American Economic Association, vol. 115, pages 62-67, May.
    • Handle: RePEc:aea:apandp:v:115:y:2025:p:62-67
    DOI: 10.1257/pandp.20251047
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    More about this item

    JEL classification:

    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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