American industries are increasingly investing in artificial intelligence while reducing their workforces, according to a new study examining 19 sectors of the US economy. The findings highlight a growing overlap between corporate adoption of AI and layoffs, although researchers caution that the figures do not establish that automation directly caused the job losses.
The study, published by HR Software, compared announced layoffs between January and September 2026 with the corresponding period in 2025, alongside changes in AI adoption and spending. Aerospace and defense ranked highest in the researcher’s combined measure of workforce reductions and AI investment, while transportation recorded the largest percentage increase in announced job cuts.
The findings emerge as American employers reorganize operations and redirect resources toward AI technology, raising questions about the long-term consequences for workers and the skills businesses will require.
Aerospace, transportation and manufacturing lead the changes
According to HR Software, announced layoffs in aerospace and defense increased 132.1% during the first nine months of 2026, reaching approximately 6,400 positions, compared with 2,786 a year earlier. Over the same period, the study calculated a 66.7% increase in AI adoption and a 36.4% rise in the share of businesses paying for AI tools.
Transportation experienced an even sharper increase in layoffs, with announced reductions climbing 189.8%, from approximately 15,300 to 44,400. AI adoption in the sector rose from 8.6% to 13%, suggesting growing interest in automated logistics, scheduling and operational systems.
Other industries recorded similar patterns. Job cuts increased 108% in chemicals, 76.4% in food production and 52.5% in industrial goods. Insurance companies announced 101.1% more layoffs, while technology-sector reductions rose 53.8%.
However, the findings also reveal important differences. Construction recorded an 85.5% increase in AI adoption, the fastest among the industries examined, while announced layoffs actually declined 27.6%.
Independent data confirm AI’s growing impact on employment
Separate findings from Challenger, Gray & Christmas support the broader conclusion that artificial intelligence has become an increasingly important factor in corporate restructuring.
According to its November 5 report, US employers announced 617,189 job cuts during the first ten months of 2026, including 121,401 explicitly attributed to AI. That represents approximately 20% of announced reductions, compared with 54,836 AI-related job cuts throughout 2025.
Technology remained the industry with the largest number of announced layoffs, totaling 171,501 through October. Transportation followed with 44,838, while food companies reported 39,370.
Nevertheless, the latest figures also suggest that economic conditions remain important. AI accounted for only 1,265 announced cuts in October, its lowest monthly total this year, while market and economic conditions became the leading stated reason for layoffs.
Research from the US Census Bureau provides additional context. Its Business Trends and Outlook Survey found that approximately 17% to 20% of American businesses were using AI during the period from December 2025 to May 2026, with adoption considerably higher among larger companies.
Reuters has also reported that major corporations are shifting investment toward AI infrastructure and automation, although layoffs frequently reflect several factors, including restructuring, slower demand and cost reductions.
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