Research on AI and the Labor Market Is Still in the First Inning

,

PIIE is a nonprofit research organization focused on global economic welfare through analysis and policy solutions. It covers diverse economic topics like globalization, finance, trade, and regional challenges. Recent studies on AI’s labor market impact reveal inconclusive findings, indicating a need for more comprehensive research into productivity, labor supply, and transition dynamics. Early research focuses heavily on labor demand, with significant variations in occupational exposure and usage of AI. Future research must consider these complexities and provide clear data for policymakers and stakeholders to understand AI’s effects on labor markets.

https://www.piie.com/blogs/realtime-economics/2026/research-ai-and-labor-market-still-first-inning

I’m a 78-year-old Retiree Who’s Vibe Coding. Being Out of the Workforce Doesn’t Mean We Can’t Use AI Like Tech Pros.

,

78-year-old Lewis Dickson, a semi-retired tech consultant, engages in vibe coding and teaches AI to seniors, demonstrating that age does not hinder tech proficiency. He enjoys using AI for personal projects and empowering older individuals to utilize technology for practical tasks, like creating newsletters and identifying plants. His extensive experience enhances his strategic application of AI, countering stereotypes about seniors and tech skills.

https://www.businessinsider.com/retiree-vibe-coding-seniors-ai-lewis-dickson-2026-2

The AI Lab Next Door

, ,

New America introduces a revamped vision that highlights collaboration between local colleges and communities to harness AI for public value. Key points include the convergence of incentives for cooperative relationships, increased investments in university AI capabilities, and the urgency for local leaders to engage colleges to address civic needs. Despite progress, challenges like cultural clashes and decentralized operations hinder large-scale partnerships. The brief calls for strategic partnerships that are problem-focused, economically beneficial, accountable, and aimed at strengthening democratic institutions amid the rapid evolution of AI.

https://www.newamerica.org/insights/the-ai-lab-next-door/

AI Adoption Rapidly Growing in Public Sector

,

AI adoption in the public sector is rising, nearing private sector levels. As of Q4 2025, 43% of public-sector employees use AI, up from 17% in Q2 2023. Private-sector usage is 41%. Frequent AI use is higher in the private sector (25% vs. 21%), while occasional use is more common in the public sector (22% vs. 16%). Managerial support impacts AI usage, with 65% of employees in high-support environments using AI frequently, compared to 37% in low-support settings. While public sector adoption remains lower than in private industries, recent trends show increasing integration of AI tools in daily operations. Challenges include data privacy concerns and the need for clearer AI strategies from management.

https://www.gallup.com/workplace/702983/adoption-rapidly-growing-public-sector.aspx

Layoffs, Cost-cutting Shatters IT Worker Confidence

Tech worker confidence plummeted amid layoffs and stunted hiring, falling over seven percentage points year-over-year, per a Glassdoor report. Positive business outlooks were reported by fewer than half of tech employees. The soft job market has diminished worker leverage, highlighting the importance for CIOs to support employee engagement and career growth amid economic uncertainties.

https://www.ciodive.com/news/glassdoor-technology-hiring-sentiment-AI/814373/

AI’s Workforce Impact Has Only Just Begun

AI is transforming 32 million jobs annually, with workflow-heavy IT roles at risk, according to Gartner. While some layoffs occur, they often stem from strategic shifts rather than pure automation. Companies are avoiding entry-level hiring, but AI also creates job opportunities. IT roles will evolve, focusing more on higher-value tasks as mundane duties become automated. CIOs must adapt workforce strategies accordingly, leveraging AI without significantly reducing headcount. AI is seen as a tool for enhancing productivity and collaboration rather than outright job replacement.

https://www.cio.com/article/4142699/ais-workforce-impact-has-only-just-begun.html

Companies Work to Navigate Operational, Legal Challenges Associated With AI in HR Systems

, , ,

AI in HR faces operational, legal challenges as firms adopt tools for hiring and analytics. Compliance concerns arise, especially with regulatory scrutiny over automated decision-making and data governance. The EU’s AI Act and GDPR mandate transparency and human oversight. U.S. states push similar regulations, increasing compliance risks. Organizations must ensure legal involvement in AI processes and vendor management while understanding technology limitations for effective oversight.

https://iapp.org/news/a/companies-work-to-navigate-operational-legal-challenges-associated-with-ai-in-hr-systems

Anthropic Is Tracking Which Jobs Are Most Exposed to AI. These 10 Professions Top the List.

,

Anthropic’s research highlights U.S. jobs most at risk from AI, identifying many white-collar roles vulnerable. Despite concerns, current evidence suggests limited job loss attributed to AI, although future impacts may be significant. The top 10 most exposed professions include computer programming and customer service. Younger workers are increasingly drawn to skilled trades due to automation fears.

https://www.cbsnews.com/news/anthropic-ai-jobs-most-exposed-risk/

Restaurants Say Tech Innovation Isn’t Taking Away Jobs

,

Tech Impact on Restaurants:

  • Restaurant sales to hit $1.55 trillion by 2026, creating over 100k jobs.
  • Many see tech as beneficial; 67% of quick-service operators highlight its positive impact on ordering/payment.
  • Tech minimally affects job elimination (6% claim it does).
  • 80% of operators consider tech a competitive advantage; 60% plan to invest in enhancing customer experience.
  • Younger diners favor tech solutions for speed and ease in ordering.
  • Tech divides sentiment: 41% see it improving hospitality, 38% believe it detracts.
  • Operators (65%) largely view tech positively for hospitality, indicating a need for balance between efficiency and human interaction.

https://www.qsrmagazine.com/story/restaurants-say-tech-innovation-isnt-taking-away-jobs/

These Robots Are Coming for the Jobs No One Wants — and Could Fill Workforce Gaps

Agility Robotics’ humanoid robot, Digit, is being deployed in manufacturing to address labor shortages for repetitive tasks. Many manufacturers struggle to find workers willing to perform mundane jobs, despite having numerous vacancies. As the workforce ages, automation is increasingly seen as essential to meet demand. Major automakers are investing in such robots for assembly lines, aiming to enhance efficiency in factories without extensive redesigns.

https://www.businessinsider.com/agility-robotics-humanoid-robots-labor-shortage-aging-workforce-2026-3

Why Contract Workers Are Embracing AI Capability Faster Than Rest of Workforce

,

Contract workers are embracing AI capabilities faster than the rest of the workforce, with staffing firms adding AI skills 46% faster than the wider labor market. This trend is driven by employers prioritizing flexibility, cost control, and AI, leading to a shift towards contract work as a necessity for both employers and job seekers. The rise in contract roles, particularly in specialized sectors like Construction and Healthcare, reflects a broader evolution of traditional employment norms and a strategic shift in workforce planning.

https://www.hrgrapevine.com/us/content/article/2026-03-05-why-contract-workers-are-embracing-ai-capability-faster-than-rest-of-workforce

Push to Replace Workers With AI Faces Backlash — Even From Management

, ,

Survey shows employees, including managers, prefer human collaboration over AI, citing limitations in AI’s creativity and judgment. Many believe replacing workers with AI leads to legal risk and disrupts talent pipelines. Despite claims of AI-driven job displacement, experts suggest a cautious approach emphasizing human roles alongside AI innovations.

https://www.cio.com/article/4138743/push-to-replace-workers-with-ai-faces-backlash-even-from-management.html

Scroll to Top