Most US tech executives say AI has not impacted employment or productivity over last three years

A recent survey by the National Bureau of Economic Research found that over 90% of US corporate executives reported that AI has not affected employment levels at their companies over the past three years. Additionally, approximately 89% of respondents stated that AI has had 'no impact' on productivity. Despite this, companies continue to cut jobs, raising concerns about the role of AI in workforce changes. Mark M. Udry, a professor at the University of Pittsburgh’s School of Business, highlighted the contradiction between increased AI investment and ongoing layoffs. He argued that AI-driven layoffs and the resulting job insecurity are undermining the conditions necessary for AI to boost employee efficiency. Udry noted that employee attitudes toward AI are a key predictor of company productivity, and that negative sentiments can actually reduce productivity, offsetting any potential efficiency gains from AI. Udry also pointed out that investors are not necessarily supportive of using AI as a justification for layoffs, as stock market reactions to such announcements have shown minimal returns. Employee morale is further deteriorating as managers frequently emphasize that AI may render certain roles obsolete. Meta, for example, has struggled to regain employee confidence after a chaotic and large-scale round of layoffs. Analyzing Glassdoor reviews, Udry and his colleagues found a strong correlation between employee attitudes toward AI and measured productivity. They concluded that negative emotions toward AI can lower productivity and counteract any efficiency benefits. Udry urged managers to stop using AI as an excuse for layoffs, calling it a strategic misstep that goes against the potential benefits of AI.