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How different uses of AI shape labor demand: evidence from France

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

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

  • Aghion, Philippe & Bunel, Simon & Jaravel, Xavier & Mikaelsen, Thomas & Roulet, Alexandra & Søgaard, Jakob, 2025. "How different uses of AI shape labor demand: evidence from France," LSE Research Online Documents on Economics 128375, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:128375
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    1. Daron Acemoglu & David Autor & Jonathon Hazell & Pascual Restrepo, 2022. "Artificial Intelligence and Jobs: Evidence from Online Vacancies," Journal of Labor Economics, University of Chicago Press, vol. 40(S1), pages 293-340.
    2. Domini, Giacomo & Grazzi, Marco & Moschella, Daniele & Treibich, Tania, 2021. "Threats and opportunities in the digital era: Automation spikes and employment dynamics," Research Policy, Elsevier, vol. 50(7).
    3. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    4. Jay Dixon & Bryan Hong & Lynn Wu, 2021. "The Robot Revolution: Managerial and Employment Consequences for Firms," Management Science, INFORMS, vol. 67(9), pages 5586-5605, September.
    5. Carlo Pizzinelli & Augustus J Panton & Ms. Marina Mendes Tavares & Mauro Cazzaniga & Longji Li, 2023. "Labor Market Exposure to AI: Cross-country Differences and Distributional Implications," IMF Working Papers 2023/216, International Monetary Fund.
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    Cited by:

    1. Gustavo de Souza, 2025. "Artificial Intelligence in the Office and the Factory: Evidence from Administrative Software Registry Data," Working Paper Series WP 2025-11, Federal Reserve Bank of Chicago.

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    More about this item

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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