Firms hire fewer people when they start using AI

Danish companies that begin using artificial intelligence subsequently hire fewer new employees compared to similar businesses that do not adopt the technology. This trend appears at the individual firm level, reflecting early employment growth differences among businesses implementing AI transformations in Denmark.

Governor Signe Krogstrup notes that the expected transformation driven by artificial intelligence has officially started in the country. Despite the slowdown in hiring at AI-adopting companies, there are currently no clear indications that overall national employment has been affected, and no broad impact is expected over the next few years.

This research comes from an analysis by Danmarks Nationalbank that utilizes unique data collected by Statistics Denmark combined with register data covering employment and wage levels. This methodology allows researchers to identify specific patterns at the firm level, offering insights that have not previously been documented in Denmark or internationally.