Global AI adoption is driving a significant shift in the labor market, resulting in a net 4% job loss across surveyed companies that have utilized the technology for over a year. While AI contributed to 11% of job eliminations and 12% of positions left unfilled, these losses were partially offset by 18% new hires. Regional disparities are stark: the UK experienced the highest net job loss at 8% due to high labor costs and low hiring rates, whereas the US saw a 2% net gain in employment driven by AI-related recruitment. European firms report productivity gains of 10-11%, yet their stocks trade at a discount compared to US peers, making ROI and pricing power defense critical. Investors are currently rewarding efficiency, as European companies reducing headcount have outperformed those actively hiring. In the US, AI deployment focuses on boosting productivity and personalizing customer interactions, with anticipated S&P 500 margin expansions of up to 60 basis points by 2027.
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