Trésor-Eco
Artificial Intelligence and Its Effects on Employment
The rise of generative artificial intelligence is raising questions about its effects on employment. From substitution at work to productivity gains that could stimulate demand for labour, the aggregate net effect is still uncertain, with certain workers at risk. At a time when France risks falling behind competitively, public authorities will need to provide support to facilitate AI’s adoption and the occupational transition of affected workers.
Artificial intelligence (AI) capabilities have rapidly advanced with the rise of large language models (LLMs) and generative AI, offering new opportunities for automation in every industry of the economy.
As with previous technological revolutions, AI has provoked unease: according to the Baromètre du numérique 2025, a survey on the use of digital technologies, 62% of French people think it puts jobs at risk.
AI may affect the volume of employment through two opposing channels: (i) it could replace some workers whose tasks can be automated, and (ii) it could increase worker productivity and stimulate labour demand.
Empirical studies cannot determine the total effect of AI on employment, due to a lack of temporal perspective and the fact that AI adoption by firms remains modest. However, certain trends could be linked to the emergence of AI. The first rounds of redundancies attributable to AI are mainly in the most exposed industries (finance and IT), although AI adoption is sometimes used as a cover for other reasons for redundancies. Furthermore, there appears to be a slowdown in the employment of young workers.
During previous technological revolutions, the jobs created by new technologies offset those lost, and the nature of work was deeply transformed. In light of this, public policy measures must provide support, particularly in the area of training, to workers so they can retrain when their jobs are put at risk by AI, and foster AI’s diffusion across the economy.
In a globally competitive environment, investing in AI is necessary to support competitiveness – and therefore employment – as remaining competitive will be increasingly tied to the adoption of AI.
