a16z: Companies Now Spend $1,024 Per Employee on AI, Nearly 2x Last Year, as Job-Loss FUD Fades

a16z · x · 2026-10-31

a16z's Charts of the Week highlights two signals: companies using AI now spend an average of $1,024 per employee annually on it — nearly double last year's spend. Meanwhile, AI job-apocalypse fears are cooling: Microsoft's $10B buyout offer to 60,000 employees (25% of workforce) wasn't framed as AI-driven, news coverage of AI-related job loss has reverted to year-ago levels, and explicit AI-linked layoffs in August–September hit yearly lows. Indeed data shows job postings for software engineers, manufacturing and especially engineering roles continuing an upward inflection, with HR postings — a leading hiring indicator — also recovering. The author argues fears of mass AI substitution lacked evidence then and now, though workforce changes are still in early innings.

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