Fears of a [white-collar bloodbath](https://www.businessinsider.com/andrew-yang-mass-layoffs-ai-closer-than-people-think-2026-2) could be overstated.
New research has found that companies spending the most on AI aren't slashing jobs; they're actually hiring faster than their peers. That includes entry-level jobs, which are often seen as among the most at risk of automation.
The study, published on Tuesday by tech startups Ramp and Revelio Labs, tracked workforce records at 22,000 US firms alongside their AI enterprise spend between January 2021 and February 2026. It found that the biggest AI adopters tended to grow their head count after rolling out the technology.
There are caveats: the companies investing most heavily in AI also tended to be larger, more likely to be VC-backed, and faster-growing. Much of the hiring growth was also concentrated in the "information" sector, which includes internet, media, and tech-adjacent companies.
Still, the findings challenge the idea that AI is the root cause of mass layoffs.
"If you are reading headlines where CEOs blame layoffs on AI, be skeptical," the authors wrote in the study.
Scapegoat for job cuts #
Several companies that announced layoffs this year have cited AI as a key reason for this. However, apocalyptic messaging about mass white-collar layoffs has also cooled in the last few months.
While it is widely agreed that AI is transforming the nature of work and the workplace, some tech leaders are increasingly raising concerns that the technology is being used as a scapegoat for job cuts. Nvidia CEO Jensen Huang said in a recent interview that CEOs linking layoffs to AI are "lazy" and "scaring people." OpenAI CEO Sam Altman said at an event in May that he does not think there will be "the kind of jobs apocalypse that some of the companies in our space advocate or talk about."
This shift in tone comes as leaders try to assuage a growing AI backlash, especially among Gen Z, which is being driven by the perception that AI is replacing jobs, above all at the entry level.
The study showed that among high-intensity AI adopters — defined as firms that are spending around $34 per employee a month on AI — head count increased by about 10.2% over the two years after adopting the tech. Entry-level hiring grew 12% during that period.
The gains were uneven among sectors, with the strongest growth in software, internet, media, and tech-adjacent firms, but broad across job categories — including engineering, sales, administration, and customer service.
Still, heavy AI adoption isn't necessarily leading to higher productivity.
Business Insider's Juliana Kaplan and Jacob Zinkula recently reported that some companies are facing a "productivity paradox" right now. While workers are completing tasks more quickly, researchers say those efficiency gains have not yet consistently translated into higher overall productivity, revenue growth, or higher profits for companies.
The authors concluded the study with some advice for young job seekers.
"If you are a young person entering the labor market, and you are choosing between otherwise similar firms, choose the one that is using AI," they said.