Tech news in 3 minutes
The AI jobs debate just got messier
Fears of AI-related job losses have intensified as companies announced nearly 90,000 AI-linked job cuts through May 2026, with projections that up to 15% of U.S. jobs could be eliminated by AI in five years. However, a report from Ramp and Revelio Labs, analyzing data from nearly 22,000 companies, challenges this narrative. It found that firms spending heavily on AI—termed "high-intensity adopters"—actually grew headcount by 10.2%, including entry-level roles. These companies spent an average of $30 per employee per month on AI. Job growth was strongest in the information sector (software, internet, media, tech-adjacent firms) and spanned functions like engineering, sales, finance, and customer service. Entry-level headcount rose 12% at tech-forward firms, contradicting claims that AI eliminates junior jobs. Yet the data skews toward tech and venture-backed firms already growing fast, making it unclear if AI drives hiring or merely correlates with expansion. The report's authors note, "This paper does not show that AI universally creates jobs, but it does counter claims that AI will lead to broad job losses." They suggest AI can be a tool for firm expansion, lowering production costs and raising returns to scaling the whole firm, not just specific teams. However, companies that experiment without sustained investment see no headcount gains. This risks widening the gap between resource-rich firms that can turn AI adoption into business gains and those stuck experimenting. In short, firms with existing capital, technical staff, and networks are most likely to benefit, while others may fall behind.