How Does AI Change Labor Demand? Evidence from 41 Countries
A new study analyzes 1.25 billion job postings across 41 countries to determine how generative AI adoption affects labor demand. The research finds that foreign affiliates of AI-adopting companies reduce the share of junior workers relative to control groups. This shift is primarily driven by an increase in senior employment rather than a decrease in junior roles, with senior workers moving toward AI-exposed occupations.
- ▪The study utilizes a dataset of 1.25 billion job postings and 154 million employment records from 41 countries to infer AI adoption.
- ▪Foreign affiliates of AI-adopting firms show a reduced junior workforce share compared to comparable control affiliates.
- ▪The decline in junior share is mainly attributed to growth in senior employment rather than a drop in junior positions.
- ▪Senior employment shifts toward AI-exposed occupations, while junior workers show a tendency to move away from these roles.
- ▪The model-based decomposition suggests that AI adoption results in modest overall productivity gains.
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| Original publisher | Stanford Digital Economy Lab |
| Canonical URL | https://digitaleconomy.stanford.edu/publication/how-does-ai-change-labor-demand/ |
| Publication time | Fri, 25 Sep 2026 10:00:19 +0000 |
| Retrieval time | 2026-09-25T10:05:32.464Z |
| Last seen | 2026-09-25T10:05:32.464Z |
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← Research ← All Work How Does AI Change Labor Demand? Evidence from 41 Countries Working Paper Date 09/21/2026 Read this publication View PDF Authors Bharat Chandar, Bouke Klein Teeselink Share this publication copy link New technologies can raise demand for some workers while lowering it for others, but knowing which workers gain and which lose is challenging. We study this question for generative AI. Our model decomposes changes in labor demand following firm AI adoption into a firm-wide productivity effect and worker-type-specific changes in task content. We take the model to the data, analyzing a sample of 1.25 billion job postings and 154 million employment records across 41 countries. We infer AI adoption from job advertisements that involve generative AI use.
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