Danmarks Nationalbank
Danmarks Nationalbank
09/16/2026 | Press release | Distributed by Public on 09/15/2026 22:52
AI Adoption and Firm Size: Employment Effects in Monthly Administrative Data
Working Paper
Labour market
16 September 2026 No. 223
Working Papers present research work by both Danmarks Nationalbank's employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.
AI Adoption and Firm Size: Employment Effects in Monthly Administrative Data
How do firms adjust their employment after adopting artificial intelligence (AI)? Using a unique dataset of Danish firm-level AI adoption data matched to monthly employer-employee records, we find that firms that adopted AI in 2023 reduced employment growth by 11 per cent relative to non-adopters by late 2025. Effects are concentrated in smaller firms and reflect lower recruitment, particularly in AI-exposed occupations. Economy-wide employment is so far relatively unaffected.
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