AI Adoption Has Boosted Employment and Wages
Business owners should assess how AI-driven productivity gains may alter their workforce needs and labor costs.
Updated on Sept. 28, 2026 in Employment
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National Economic Council Director Kevin Hassett reported that companies utilizing artificial intelligence have seen increases in sales, hiring, and wages. This outlook contrasts with public sentiment as U.S. investment in AI is projected to reach $10.3 trillion through 2032.
Why it matters
The findings suggest that AI adoption acts as a productivity lever, potentially sustaining a 4% annual GDP growth rate by modernizing data centers and infrastructure. For operators, this indicates a shift toward specialized technical roles even as macroeconomic fears regarding labor displacement persist.
U.S. investment in AI is expected to total $10.3 trillion between 2025 and 2032, representing an average annual share of 3.63% of GDP. Meanwhile, 71% of U.S. adults fear AI will erode employment, a sentiment that reaches 73% among those under age 30.
The players
Kevin Hassett
As director of the National Economic Council, he coordinates economic policy and advises the executive branch on growth and labor trends.
Economic Club of New York
A prominent forum for leaders in business and finance to discuss national and international economic developments.
Pew Research Center
A nonpartisan fact tank that conducts public opinion polling and demographic research on social and economic trends.
The details
Companies integrating AI are increasing capital expenditures on power systems, networking equipment, and specialized semiconductors. This infrastructure investment drives operational productivity, which Hassett credits for the observed rise in both employment and wages across adopting firms. These upgrades allow businesses to reallocate human resources toward tasks that capitalize on automated output, shifting the internal demand for labor rather than simply reducing headcounts.
Timeline
2025-2032 is the window for the projected $10.3 trillion U.S. investment in AI.
June 2026 marked the period of the Pew Research Center polling on AI-related employment fears.
Q3 2026 is the period for which the U.S. economy is estimated to achieve 5% annual growth.
September 28, 2026, was the date Kevin Hassett addressed the Economic Club of New York.
Market Landscape
The push toward massive AI infrastructure spending follows the pattern of historical technology adoption cycles that initially fueled productivity gains. Unlike previous transitions, current adoption is occurring alongside record levels of public skepticism regarding long-term job security.
Operators should monitor the gap between internal productivity gains from AI and public labor concerns to manage human resources effectively. Review your capital allocation for data and networking equipment to ensure it aligns with projected sectoral growth of 5% in the near term.
The takeaway
AI adoption appears to be a net positive for firm-level wages and headcount, contrary to the broad public belief in job erosion. Track your internal output-per-worker metrics against your industry's benchmarks to determine if your current AI investment matches your growth rate targets.
Further reading
For more analysis on how technological shifts affect local markets, visit the Employment section.
Source note: This article includes information reported by CFO Dive.
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Do you believe the adoption of artificial intelligence will eventually create more jobs than it eliminates?
