The Labor Market Effects of Generative Artificial Intelligence

40 Pages Posted: 10 Apr 2025 Last revised: 25 Jun 2025

Jonathan Hartley

Stanford University

Filip Jolevski

Department of Economics, George Mason University; Enterprise Analysis Unit, Development Economics Vice Presidency, The World Bank

Vitor Melo

Clemson University

Brendan Moore

Stanford University, Department of Economics

Date Written: December 18, 2024

Abstract

In this paper we develop a new survey analyzing Generative AI use in the labor market to assist in measuring the economic effects of Generative AI. We find, consistent with other surveys that Generative AI tools like large language models (LLMs) are most commonly used in the labor force by younger individuals, more highly educated individuals, higher income individuals, and those in particular industries such as customer service, marketing and information technology. Overall, we find that LLM adoption at work among U.S. survey respondents above 18 has increased rapidly from 30.1% as of December 2024, to 43.2% as of March/April 2025. We also estimate Generative AI use at the intensive margins, its efficiency gains and its use in job search and seek to examine the effects of LLMs on productivity and the labor market using a number of additional datasets. These results have several implications for policymakers, businesses, and researchers navigating the evolving landscape shaped by the integration of Generative AI into the global economy.

Keywords: Large Language Models, Artificial Intelligence, Employment Dynamics, Automation

JEL Classification: E00, E02, F22, F43, P48

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