The AI jobs debate just got messier
A new report finds "high-intensity AI adopters” saw headcount increase 10.2%. Among those companies, entry-level headcount rose by 12%, countering the rhetoric that AI kills junior jobs.
AI-related job loss fears grow each time another company announces a round of layoffs . Through May of 2026, companies announced that close to 90,000 job cuts were tied to AI, and, by some accounts, up to 15% of U.S. jobs are projected to be eliminated by AI over the next five years. Promises from the tech industry that AI will also create new jobs does little to ease fears, especially for the generation wondering if anyone will be hiring when they graduate.
A recent report from Ramp and Revelio Labs, which track enterprise AI spend and workforce records from nearly 22,000 companies, respectively, complicates that gloomy narrative.
The report found that companies spending heavily on AI are growing headcount faster, even in the entry-level roles that many fear are doomed. According to the report, “high-intensity adopters” — firms that spend on average $30 per employee per month on AI in the first three months — saw headcount increase 10.2%.
Headcount also rose across functions, including engineering , sales, administration, customer service, finance, marketing, and scientist roles. The strongest job growth among high-intensity adopters was in the information sector, which includes software, internet, media, and tech-adjacent firms.
Despite these positive signals, the data isn’t as rosy as it seems. It skews heavily towards tech-forward, knowledge-work firms — ones that might have VC-backing and are growing fast anyway, making it difficult to say whether AI is contributing to the hiring or just showing up at companies that are expanding anyway.
“This paper does not show that AI universally creates jobs,” the paper’s authors admit, “but it does counter claims that AI will lead to broad job losses.”
It also counters claims that AI is killing all junior jobs. Recent research from Goldman Sachs found that AI has already erased about 16,000 net jobs per month over the past year, with Gen Z and entry level workers taking the brunt of the burden. But in tech-forward firms, the report finds that entry-level headcount actually rose by 12%.
So what can we take away from this? Perhaps that AI isn’t always a tool for labor substitution, but that it can be a tool for firm-expansion instead.
“For software and technology firms, AI can make core output cheaper or faster to produce: writing code, debugging, building internal tools, producing technical documentation, and supporting product development,” the report reads. “Lower production costs in these workflows can raise the return to expanding the whole firm, not just the engineering team.”
But companies that buy subscriptions and run pilots, yet did not go on to make sustained investments, don’t tend to see any gains in headcount, per the report.
That sets up the potential for a widening gap between firms that have the resources — like capital, technical staff, founder networks, and management bandwidth — to turn AI adoption into actual business gains and those that are stuck experimenting with subscriptions. In other words, this report suggests that firms that already have the resources are the ones who will see the largest gains.
The paper’s authors speculate such a divide may continue to grow, saying: “Firms without those channels may fall behind.”
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Rebecca Bellan is a senior reporter at TechCrunch where she covers the business, policy, and emerging trends shaping artificial intelligence. Her work has also appeared in Forbes, Bloomberg, The Atlantic, The Daily Beast, and other publications.
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Key takeaways
- Companies that adopt AI intensively are increasing their hiring, especially in entry-level positions.
- Job growth may not be representative of all sectors, reflecting inequality in the job market.
- Training and education for new professionals must align with market demands driven by AI.
Editorial analysis
The discussion about the impact of artificial intelligence (AI) on the Brazilian job market gains new nuances with the recent report indicating job growth in companies that adopt AI intensively. For the tech sector in Brazil, which already faces challenges such as a shortage of skilled labor and the need for constant innovation, this evidence may signal an opportunity for team expansion, especially in startups and tech companies that are rapidly adapting to new tools.
However, it is crucial to consider that the data presented in the report predominantly reflects the scenario of companies with strong investment in technology, which may not be representative of all sectors of the Brazilian economy. Many small and medium-sized enterprises still struggle to integrate AI into their processes, which may limit their capacity for growth and hiring. Therefore, while some companies are thriving with AI adoption, others may fall behind, exacerbating inequalities in the job market.
Moreover, the 12% increase in entry-level hiring in high-intensity AI companies suggests that these organizations are investing in training and talent development, which is a positive sign for the new generation of professionals. However, it is important for educational institutions and training programs in Brazil to align with these market demands, preparing young people for the new roles that are emerging.
What to watch for next is how Brazilian companies, especially outside the tech axis, will respond to this trend. Will they be able to adopt AI in a way that also generates jobs, or will the pressure for efficiency lead to staff cuts? The future of work in Brazil may depend on the tech sector's ability to lead this transformation, but also on other sectors' adaptation to the new reality driven by AI.
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