BofA: AI adoption shows limited impact on overall job growth

Bank of America's new analysis indicates that artificial intelligence adoption has not significantly influenced overall job growth across industries in the U.S. since the release of ChatGPT in 2022. Despite AI exposure being measured by the Felten, Raj and Seamans (2021) index, employment in the highest-exposed industries has remained largely stagnant since late 2022. Meanwhile, sectors with minimal AI exposure have seen a growth rate of approximately 2%.

The bank's examination of 206 industries revealed a weak correlation between AI usage levels and labor demand, as well as between AI adoption and job openings or employment growth. Some exceptions include declines in employment within the information, finance, and insurance sectors.

Unemployment rates among college graduates aged 22-27 have risen since their lows in 2023 and remain above pre-2020 levels, though this uptick is believed to be primarily due to uncertainty caused by tariff policies last year. AI-related capital expenditure, however, appears to be stimulating job growth in goods-producing sectors.

Improved data center construction has led to an increase in non-residential construction jobs, and manufacturing industries supporting AI-related developments are experiencing stronger growth compared to those not involved in such advancements.