New study points to AI-driven hiring growth

A new study suggests that artificial intelligence (AI) may not be causing the large-scale white-collar job losses that many people fear.

Instead, companies that spend the most on AI are actually hiring more workers.

Tech startups Ramp and Revelio Labs studied 22,000 US companies between January 2021 and February 2026. They found that businesses spending about $34 per employee each month on AI increased their workforce by 10.2% within two years. Hiring for entry-level jobs also grew 12%, showing that AI is not replacing all beginner roles.

Experts urge caution
The study questions claims that AI is the main reason for layoffs. Its authors said companies may sometimes use AI as an excuse for job cuts.

Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman have also said fears of a major AI-driven jobs crisis are being exaggerated.

The strongest gain was seen in software, internet, media, and other technology-related industries.

However, the study found that AI has not yet consistently improved company profits or productivity. 

Firms rethink AI-led layoffs
Several companies are reversing AI-led job cuts after automated systems failed to handle complex tasks. Ford, IBM, and the Commonwealth Bank of Australia have rehired employees to improve operations.

Another study found that 55% of companies that reduced staff due to AI later regretted those decisions, highlighting the continued importance of human expertise alongside artificial intelligence.