A recent study conducted by financial services firm Ramp, in collaboration with employment database Revelio Labs, sheds light on the dual impact of AI on job markets, particularly highlighting trends within the tech sector. While layoffs have been frequently attributed to AI advancements, the findings reveal that many fast-growing companies are simultaneously creating new jobs.
According to Ara Kharazian, Ramp's lead economist, the data indicates a notable uptick in entry-level hiring as businesses increasingly seek individuals well-versed in AI technologies. The analysis, covering nearly 22,000 U.S. companies from January 2021 to February 2026, discovered that organizations that invested significantly in AI saw their overall workforce grow by an average of 10% in the two years following the implementation of AI technologies. Moreover, companies with the largest AI expenditures increased their hiring of entry-level positions by 12%.
Kharazian emphasizes that job seekers and recent graduates should consider companies that embrace AI, as those firms tend to experience faster growth. The study noted that early AI adopters spent over $100 per month per employee on advanced AI tools, rather than just basic subscriptions like ChatGPT. In contrast, companies that casually adopted AI reported no gains in hiring and even downsized their workforces.
The Ramp study highlights the robust employment effects of AI, particularly within rapidly expanding, venture-backed firms focused on hiring tech-native junior employees. This perspective appears at odds with a broader analysis from Stanford University in November 2025, which indicated that overall employment for young software developers had declined nearly 20% since late 2022.
Kharazian contends that both findings can coexist, with the Stanford study encompassing a wider labor market and not specifically focusing on AI-utilizing firms. He points out that while there may be an overarching decline in hiring for younger demographics, companies actively employing AI are experiencing strong hiring trends.
Further complicating the narrative, the California AI-unemployment tracker has reported alarming patterns across various education and regional categories. It appears that the negative impacts of AI are not limited to younger workers in entry-level positions. Increasing unemployment insurance claims have been noted among college-educated individuals in high-AI fields like customer service and software development, remaining elevated since the launch of ChatGPT in 2022.
Findings also indicate a rise in claims among advanced degree holders, showing a significant increase in unemployment claims for those holding master’s or PhD degrees in high-risk occupations, escalating from approximately 13,000 claims per month in late 2022 to between 16,000 and 22,000 monthly since mid-2023.
Moreover, a demographic breakdown suggests that many claims originate from individuals aged 36 to 65, challenging the notion that AI's disruptive impact is confined solely to early-career roles. The analysis revealed that the San Francisco Bay Area faces a higher claim rate than other regions in California, with a significant concentration of job loss in the tech sector, which has seen over 160,000 layoffs in 2026 as reported by trueup.io.
While major firms like Meta, Oracle, and Microsoft have acknowledged AI as a factor in their layoffs, they also continue to invest heavily in AI infrastructure. Kharazian's findings imply that some companies attributing layoffs to AI may be engaging in a practice known as "AI washing," where they redirect attention from standard cost-cutting measures to the narrative of technological disruption. He advises a critical approach when interpreting statements from CEOs regarding layoffs linked to AI.
