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An international team including Dr Fabian Braesemann carried out a study focused on the impact of generative AI on the job market.
They analysed millions of data points from an online freelancing platform.
The data showed the effects of AI on the labour market are nuanced, Dr Braesemann said, with some jobs seeing reduced demand and others experiencing an increase.
Dr Fabian Braesemann (Image: University of Oxford) The jobs most affected are those where AI significantly impacts work routines, such as writing, accounting, programming, project management, and graphic design.
Dr Braesemann said: “First, ChatGPT, DeepSeek, and other AI tools are not the big job killers that some have feared.
“Instead, generative AI can increase productivity if integrated smartly into business operations.
“The adoption of AI tools by companies will have a long-lasting impact on the job market.
“We are seeing the beginnings of a possibly fundamental economic transformation due to the widespread adoption of generative AI tools in many sectors.”
The study found whether or not a job is at risk of being replaced depends on its substitutability or complementarity with AI.
For some job types, AI has become so powerful that it can effectively replace human labour.
However, for many more occupations, AI can help employees to be more productive.
The study also noted an increased demand for chatbot development and machine learning jobs, indicating potential for new markets and product developments using generative AI.
Dr Braesemann said: “In January 2025 the stock market reacted heavily to the release of China’s generative AI tool ‘DeepSeek’, with shares in the American chip manufacturer Nvidia and other highly valued companies associated with the recent AI hype dropped dramatically.
“These rapid stock market movements show the market for generative AI technologies is highly dynamic.”
The study suggests organisations that successfully integrate AI applications into their business practices will gain a significant competitive advantage.
The researchers also highlighted the potential for innovation and lower prices for AI products and applications due to competition between American and Chinese AI companies.
The study concluded that to harness the productivity and innovative potentials that generative AI offers, all economic stakeholders need to work together.
This includes firms establishing practices on using generative AI effectively in the workplace, the workforce familiarising themselves with the productive use of AI, employees embracing learning new skills, and governments creating regulatory frameworks that allow the productive use of generative AI.
The study was published in the Journal of Economic Behavior and Organization.