TY - RPRT AU - Hellsten, Mark AU - Khanna, Shantanu AU - Lodefalk, Magnus AU - Yakymovych, Yaroslav TI - The Effects of Artificial Intelligence on Jobs: Evidence from an AI Subsidy Program PY - 2025/Nov/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 18267 UR - https://www.iza.org/publications/dp18267 AB - Artificial intelligence (AI) is expected to reshape labor markets, yet causal evidence remains scarce. We exploit a novel Swedish subsidy program that encouraged small and mid-sized firms to adopt AI. Using a synthetic difference-in-differences design comparing awarded and non-awarded firms, we find that AI subsidies led to a sustained increase in job postings over five years, but with no statistically detectable change in employment. This pattern reflects hiring signals concentrated in AI occupations and white-collar roles. Our findings align with task-based models of automation, in which AI adoption reconfigures work and spurs demand for new skills, but hiring frictions and the need for complementary investments delay workforce expansion. KW - hiring KW - labor markets KW - Artificial Intelligence KW - task content KW - technological change ER -