BofA: AI adoption shows limited impact on overall job growth

Investing.com - Bank of America reports that artificial intelligence adoption has shown little correlation with job growth across U.S. industries since ChatGPT's release in 2022, according to a new analysis of employment data.

Employment in industries with the highest AI exposure, as measured by the Felten, Raj and Seamans (2021) index, has remained largely unchanged since late 2022. Industries with the least AI exposure show growth of around 2%. The bank found little correlation between job growth and AI exposure across 206 industries examined.

The analysis found little relationship between AI usage levels and labor demand when examining job openings and employment growth. Declines in demand for information and finance and insurance sectors may be exceptions to this pattern.

Unemployment rates for college graduates aged 22-27 have risen since lows in 2023 and remain above 2019 levels. Bank of America notes that while some of the increase likely stems from uncertainty created by tariff policies last year, little improvement has occurred even as that uncertainty faded.

AI-related capital expenditure appears to be fueling job growth in goods-producing sectors. The data center buildout has driven reacceleration in non-residential construction jobs, and manufacturing sectors supporting AI-related buildout show stronger growth compared to those that do not.

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