EXECUTIVE SUMMARY

Artificial intelligence adoption is accelerating, but the employment effects to date remain far more modest than many forecasts and public expectations imply. For real estate investors, the key question is not simply the impact of AI on employment levels, but how it might change the composition, productivity and location of employment, and therefore future demand for space.

• AI adoption has surged without broad-based job displacement. Overall U.S. employment has continued to grow even as AI usage has exploded, and employment among younger workers has also remained resilient.
• The more granular evidence points to limited and uneven disruption. Academic research, firm-level data and business surveys generally show little evidence of economy-wide employment losses, with most adjustments occurring through changing tasks, retraining and selective pressure on certain entry-level roles.
• The longer-term debate may need to be reframed. With U.S. labor-force growth projected to slow to just 0.3% annually over the next decade, AI can be a driver of productivity gains that helps offset a growing shortage of labor and sustain economic growth.