Artificial intelligence (AI) is fueling American economic growth, though its effect on employment is limited.<\/p>\n
That\u2019s according to a recent report<\/a> from the Bank of America<\/a> (BofA) Institute<\/a>, which finds that AI-related capital expenditures, especially in software and computing, were key drivers of GDP growth or 2025.<\/p>\n \u201cAfter a slight decline in Q1, GDP growth rebounded in Q2 with 3.8% for an annualized rate of 1.6% in 1H,\u201d the report said. \u201cOne major reason for the resiliency in growth to date is the investment being poured<\/a> into technology- and AI-related categories.\u201d<\/p>\n And while there have been fears that AI could cause steep job losses, the report found little sign that this has come to pass so far.<\/p>\n \u201cWhen comparing AI usage levels to year-to-date employment changes in major industries, there is a slightly negative correlation between higher AI usage and employment growth,\u201d the report said, noting that \u201cthe relationship is insignificant.\u201d<\/p>\n On the contrary, BofA said, white-collar spaces like finance, professional services and information are seeing a positive connection between AI usage and job growth.<\/p>\n Advertisement: Scroll to Continue<\/p>\n \u201cThese findings suggest that AI is playing out mostly as a productivity story for white-collar workers,\u201d the bank\u2019s researchers wrote.<\/p>\n The report also pointed out some caveats. For example, companies might adopt a different strategy during an economic downturn, \u201cwith AI allowing for larger layoffs as opposed to job gains amid resilient growth.\u201d<\/p>\n Research by PYMNTS Intelligence has found that while more than half of adult Americans regularly engage<\/a> with generative AI, there\u2019s also a considerable amount of angst around the technology. A third of gen AI users worry it will replace jobs.\u00a0<\/p>\n \u201cMuch of the doom-and-gloom<\/a> is coming straight from the horse\u2019s mouth,\u201d PYMNTS wrote last month. \u201cIn May, Sam Altman, the CEO of ChatGPT maker OpenAI<\/a>, told a congressional hearing that AI could displace 70% of all jobs<\/a>.\u201d<\/p>\n That same month, head of AI firm Anthropic<\/a>, Dario Amodei, told Axios the technology could eliminate half of all entry-level white-collar jobs and lead to unemployment of 10-20%<\/a> within the next one to five years.<\/p>\n