Mind the Gap: AI Adoption in Europe and the U.S.

Differences in AI adoption in Europe and the US: Explanations and implications for productivity growth

The economic impact of generative AI will depend on the speed and breadth of adoption by workers and firms. Drawing on a survey of workers in the US and six European countries and a firm survey covering 32 European countries, this column explores the speed of AI adoption across countries and whether an ‘AI gap’ will exacerbate existing productivity differences between the US and Europe. There are large differences in AI adoption across countries, much of which are accounted for by management practices. Higher AI adoption rates are associated with faster productivity growth but not with changes in employment.

The ‘productivity paradox’ of AI adoption in manufacturing firms | MIT Sloan

Companies that adopt industrial artificial intelligence see productivity losses before longer-term gains, according to new research.

Labor market impacts of AI: A new measure

We introduce "observed exposure," combining LLM capability with real Claude usage data, and share early evidence on employment effects.

Still Waters, Rapid Currents: Early Labor Market Transformation under Generative AI

We study the early labor market impacts of AI chatbots by linking large-scale adoption surveys to administrative labor market records in Denmark. We document rapid currents: most employers in exposed occupations have adopted chatbot initiatives, workers report productivity benefits, and new AI-related tasks are widespread. Yet these currents have not broken the surface: using difference-indifferences, we estimate precise null effects on earnings and recorded hours at both the worker and workplace levels, ruling out effects larger than 2% two years after the launch of ChatGPT. What moves is the structure of work: employers absorb AI through task reorganization—including new tasks in content generation, AI oversight, and AI integration—and adopters transition into higher-paying occupations where AI chatbots are more relevant, though still too few to move average earnings. Technological change reshapes work well before it surfaces in earnings or hours.

AI adoption higher among men than women: Survey

This large gap — 81.3% compared to 58.8% — stems from the higher representation of women in skilled trades, where AI usage remains extremely low.

AI Adoption and Inequality

There are competing narratives about artificial intelligence’s impact on inequality. Some argue AI will exacerbate economic disparities, while others suggest it could reduce inequality by primarily disrupting high-income jobs. Using household microdata and a calibrated task-based model, we show these narratives reflect different channels through which AI affects the economy. Unlike previous waves of automation that increased both wage and wealth inequality, AI could reduce wage inequality through the displacement of high-income workers. However, two factors may counter this effect: these workers’ tasks appear highly complementary with AI, potentially increasing their productivity, and they are better positioned to benefit from higher capital returns. When firms can choose how much AI to adopt, the wealth inequality effect is particularly pronounced, as the potential cost savings from automating high-wage tasks drive significantly higher adoption rates. Models that ignore this adoption decision risk understating the trade-off policymakers face between inequality and efficiency.

Half of Americans report using AI services, with information and productivity leading use cases

New Epoch AI/Ipsos poll reveals high AI engagement, diverse use cases, and emerging workplace integration

Technological Disruption in the US Labor Market • The Aspen Institute Economic Strategy Group

DAVID DEMING, CHRISTOPHER ONG, LAWRENCE H. SUMMERS This paper explores past episodes of technological disruption in the US labor market, with the goal of learning lessons about the likely future impact of artificial intelligence (AI). The authors measure changes in the structure of the US labor market going back over a century in two ways.&nbsp...

Do AI-enabled companies need fewer people? | Seldo.com

AI-native startups are doing more with less — 40% smaller teams, 6x higher revenue per employee — and the data confirms it's not just hype. But the wave of new jobs I predicted hasn't materialized so far. Compute is replacing labor. Will that change?

The Rise of Industrial AI in America: Microfoundations of the Productivity J-curve(s)

Early AI adoption in U.S. manufacturing produced a J-curve pattern of short term productivity loss followed by medium term growth – though quite unevenly.

Predictors of Artificial Intelligence Technology Adoption Behaviour among Female Entreprenuers in a Typical Emerging Market

Though artificial intelligence (AI) adoption among female entrepreneurs in emerging economies is still limited and poorly understood, AI presents revolutionary

Most Americans say AI development is moving too fast and twice as many are AI pessimists as AI optimists

Young adults are more likely than older Americans to believe that AI will create economic gains that benefit everyone, but they are also more likely to worry that AI will replace jobs they depend upon

Companies rushed in on AI. Now some are pulling back

Rapid AI adoption left workers cleaning up a flood of errors and low-quality work

Women and AI: The Gender Gap in AI Adoption and Recognition [Data]

Lean In’s survey shows how women are losing out in the AI age. Learn how women and men compare in AI adoption in the workplace, recognition, and more.