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AI Chatbots Integrate into Workplaces Without Disrupting Labor Markets, Study Finds

Beyond the hype, AI is reshaping work, but not destroying it. Generative AI is no longer confined to the realm of science fiction; it has become a ubiquitous tool in many workplaces. From code generation at tech giants like Google and Microsoft to the mass production of language courses at Duolingo, large language models have quickly established a significant presence in cognitive tasks. However, the critical question still looms: is AI truly disrupting the labor market? A recent and rigorously conducted study by Anders Humlum of the University of Chicago and Emilie Vestergaard of the University of Copenhagen provides some empirical insights. Published in April 2025, the study is titled "Large Language Models, Small Labor Market Effects." It combines Danish administrative data with large-scale adoption surveys to offer a comprehensive analysis of AI's impact on the workforce. The findings are both robust and surprising: despite the widespread use of AI chatbots in eleven highly exposed professions, there is no detectable effect on wages or hours worked—not even a 1% shift. The study examined over 25,000 workers and 7,000 companies, revealing that chatbots havebecome a regular part of daily operations. In companies that actively promote their use, 83% of employees rely on chatbots, and 38% of firms have developed internal applications to integrate these tools into their workflows. While AI is undeniably transforming how work is done, its economic impact appears to be minimal—at least for now. This suggests that the integration of AI in the workplace is more about enhancing productivity and efficiency rather than fundamentally altering employment dynamics. The study highlights that AI tools are being adopted to support and augment human workers, not replace them en masse. As the technology continues to evolve, the long-term implications on the labor market remain to be seen, but the initial evidence points to a coexistence rather than a displacement.

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