AI Boosts Firm Hiring but Limits Worker Gains
Recent studies show AI increases company headcounts and productivity while employers capture most gains, leaving few workers with higher pay or better work-life balance.
Recent economic data and academic research indicate that artificial intelligence is increasing corporate productivity and hiring rather than triggering a widespread loss of jobs. A working paper from the Bureau of Economic Analysis and a study by Ramp and Revelio Labs found that firms adopting AI most intensively increased their employee headcounts by approximately 10 percent over two years, with entry-level hiring growing by 12 percent as companies sought AI-proficient young workers.
However, a study led by University College Dublin and other institutions reveals that these productivity gains are primarily captured by employers. Based on the Working in Ireland Survey 2025 of 4,300 workers, the report found that while nearly one-third of employees use AI, only 4.7 percent reported earnings increases. Most workers who save time through AI reinvest that time into additional work rather than improving their work-life balance.
Adoption remains uneven across demographics and business sizes. The Irish study noted that workers with postgraduate degrees are up to 15 times more likely to use AI than those without. Similarly, while small businesses see outsized gains from AI, many lack the networks to facilitate adoption, prompting the Milken Institute to call for a national council on AI for small businesses. Peter Burke, Minister for Enterprise, Tourism and Employment, stated that AI adoption must be responsible and inclusive.
