The AI jobs debate just got messier

Concerns about job losses due to artificial intelligence are escalating as more companies announce layoffs. As of May 2026, nearly 90,000 job cuts have been linked to AI, with projections suggesting that up to 15% of jobs in the U.S. could vanish within the next five years. The tech industry's assurances that AI will generate new employment opportunities do little to alleviate the anxiety felt by young graduates entering the workforce. A recent study conducted by Ramp and Revelio Labs sheds light on this complicated issue. The research, which analyzes enterprise AI spending and workforce data from around 22,000 organizations, reveals that businesses investing significantly in AI are actually increasing their workforce, including entry-level positions that many feared were at risk. According to the findings, companies classified as 'high-intensity adopters'—those spending an average of $30 per employee per month on AI—experienced a 10.2% increase in headcount across various functions such as engineering, sales, and customer service. Interestingly, the most substantial job growth occurred within the information sector, encompassing software, internet, and media companies. However, this positive trend comes with caveats. The data is predominantly reflective of tech-driven firms, often backed by venture capital, which raises questions about whether AI is genuinely responsible for job creation, or if it is simply present in companies that are already expanding. The authors of the report clarify that it does not prove that AI universally generates jobs, but it challenges the notion that AI will lead to widespread employment losses. Recent findings from Goldman Sachs indicated that AI has contributed to the loss of approximately 16,000 jobs per month over the past year, disproportionately affecting Gen Z and entry-level workers. Yet, in tech-oriented companies, entry-level roles actually saw a 12% increase. What can we conclude from these insights? It appears that AI can sometimes serve as a catalyst for growth rather than merely a substitute for human labor. For software and technology firms, AI can reduce production costs related to tasks like coding and product development, ultimately facilitating broader organizational expansion. Conversely, companies that merely dabble in AI through subscriptions without making substantial investments often do not experience headcount increases. This situation may lead to a widening gap between firms that possess the necessary resources—such as capital and technical expertise—to translate AI adoption into tangible benefits, and those that remain stagnant, caught in a cycle of experimentation. The authors of the study caution that firms lacking these advantages may struggle to keep pace as the landscape evolves.