Abstract: This article examines the relationship between organizational artificial intelligence adoption and workforce dynamics using firm-level spending and employment data. Analysis of 21,559 U.S. firms reveals that high-intensity AI adopters experience approximately 10% employment growth following adoption, with particularly strong gains in entry-level positions and across multiple occupational categories including engineering, sales, and customer service. These findings challenge widespread predictions of AI-driven job displacement and suggest that intensive AI investment correlates with organizational expansion rather than workforce reduction. The employment gains emerge gradually, are concentrated in the Information sector, and appear only among firms making sustained, material AI investments rather than those engaging in limited experimentation.
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