Artificial Intelligence Transforms Employment in Russian Companies
Russian enterprises rank among the world’s top ten leaders in AI adoption. In 2023, nearly one-third of domestic companies reported using artificial intelligence. According to a new study by Larisa Smirnykh, Professor at the HSE Faculty of Economic Sciences, the impact of digitalisation on employment is uneven: while the introduction of AI in small and large enterprises led to a reduction in the number of employees, in medium-sized companies, on the contrary, it contributed to job growth. The article has been published in Voprosy Ekonomiki.
Global experience shows that artificial intelligence is rapidly transforming the labour market. On one hand, it can lead to job cuts; on the other, it significantly boosts productivity. So far, most research in Russia on the effects of AI use has focused on the job vacancy market rather than on companies. Larisa Smirnykh, Professor at the HSE Faculty of Economic Sciences and Deputy Head of the HSE Laboratory for Labour Market Studies, set out to fill this knowledge gap.
Her study is based on data from enterprise surveys conducted in 2022 and 2023 by the Laboratory for Labour Market Studies at the HSE Faculty of Economic Sciences. This two-year dataset allowed the author to assess employment dynamics.
The sample included nearly 1,800 enterprises across seven industries: mining, manufacturing, construction, transport and communications, trade and catering, finance, and business services.
According to the survey, 29% of enterprises in Russia have implemented AI—higher than in the EU (22%), slightly lower than in the United States (33%), and behind global leaders such as India (59%) and Singapore (53%).
The survey findings indicate that artificial intelligence has had a significant impact on company employment levels. On average, enterprises that implemented AI saw a 0.79 percentage point decrease in staff numbers compared to the previous year. However, the effect was not uniform: small and large businesses reduced their staff, while medium-sized companies increased their number of employees. The differences between these groups can be explained by a combination of structural and financial factors.
Large enterprises (with more than 250 employees), typically operating in capital-intensive and mature sectors of the economy such as manufacturing, underwent organisational restructuring and staff optimisation. As a result, their employment levels declined by 2.08 percentage points.
Small businesses (with up to 100 employees) were primarily engaged in trade, finance, and business services. Labour costs accounted for the largest share of their expenses (59%), which motivated employers to adopt AI technologies and reduce the number of employees by 1.26 percentage points.
Medium-sized enterprises often demonstrated stable financial performance and a high level of human capital. They expanded production and business operations, creating new tasks for employees. At the same time, AI complemented skilled labour, and there was a 2.96 percentage point increase in the number of employees.
Larisa Smirnykh
'AI technologies can boost productivity, help reduce costs, and optimise staffing levels, potentially leading to higher profits. However, if a company’s revenue comes primarily from other sources, such as resource rents, this company may have less incentive to adopt AI technologies,' notes Larisa Smirnykh of the HSE Faculty of Economic Sciences.
'The decrease in employment following the introduction of AI technologies reflects an adaptation period during which companies gain experience in their effective use,' she emphasises. In the long term, enterprises may see an increase in employment. 'There is no clear evidence yet that AI technologies cause unemployment; instead, their implementation is accompanied almost simultaneously by two effects: job elimination and job creation,’ Prof. Smirnykh explains.
At the same time, some companies have not yet adopted AI technologies. In Russia, the main reasons for this include a perceived lack of necessity (51%), high costs (30%), and a shortage of qualified personnel (14%).
The technological transformation brought about by AI is less disruptive for society and employees when the institutional environment adapts flexibly to these changes. Continuous training in digital skills should be provided to employees, and large companies need to create opportunities for internal mobility within their workforce. 'At the micro level, opportunities must be consistently provided and maintained to support initiatives and encourage individuals who are open to innovation and learning. This requires educational and informational support from both the government and companies,' says Prof. Smirnykh.
See also:
Scientists Discover Why Parents May Favour One Child Over Another
An international team that included Prof. Marina Butovskaya from HSE University studied how willing parents are to care for a child depending on the child’s resemblance to them. The researchers found that similarity to the mother or father affects the level of care provided by parents and grandparents differently. Moreover, this relationship varies across Russia, Brazil, and the United States, reflecting deep cultural differences in family structures in these countries. The study's findings have been published in Social Evolution & History.
When a Virus Steps on a Mine: Ancient Mechanism of Infected Cell Self-Destruction Discovered
When a virus enters a cell, it disrupts the cell’s normal functions. It was previously believed that the cell's protective response to the virus triggered cellular self-destruction. However, a study involving bioinformatics researchers at HSE University has revealed a different mechanism: the cell does not react to the virus itself but to its own transcripts, which become abnormally long. The study has been published in Nature.
Researchers Identify Link between Bilingualism and Cognitive Efficiency
An international team of researchers, including scholars from HSE University, has discovered that knowledge of a foreign language can improve memory performance and increase automaticity when solving complex tasks. The higher a person’s language proficiency, the stronger the effect. The results have been published in the journal Brain and Cognition.
Lost Signal: How Solar Activity Silenced Earth's Radiation
Researchers from HSE University and the Space Research Institute of the Russian Academy of Sciences analysed seven years of data from the ERG (Arase) satellite and, for the first time, provided a detailed description of a new type of radio emission from near-Earth space—the hectometric continuum, first discovered in 2017. The researchers found that this radiation appears a few hours after sunset and disappears one to three hours after sunrise. It was most frequently observed during the summer months and less often in spring and autumn. However, by mid-2022, when the Sun entered a phase of increased activity, the radiation had completely vanished—though the scientists believe the signal may reappear in the future. The study has been published in the Journal of Geophysical Research: Space Physics.
Banking Crises Drive Biodiversity Loss
Economists from HSE University, MGIMO University, and Bocconi University have found that financial crises have a significant negative impact on biodiversity and the environment. This relationship appears to be bi-directional: as global biodiversity declines, the likelihood of new crises increases. The study examines the status of populations encompassing thousands of species worldwide over the past 50 years. The article has been published in Economics Letters, an international journal.
Scientists Discover That the Brain Responds to Others’ Actions as if They Were Its Own
When we watch someone move their finger, our brain doesn’t remain passive. Research conducted by scientists from HSE University and Lausanne University Hospital shows that observing movement activates the motor cortex as if we were performing the action ourselves—while simultaneously ‘silencing’ unnecessary muscles. The findings were published in Scientific Reports.
Russian Scientists Investigate Age-Related Differences in Brain Damage Volume Following Childhood Stroke
A team of Russian scientists and clinicians, including Sofya Kulikova from HSE University in Perm, compared the extent and characteristics of brain damage in children who experienced a stroke either within the first four weeks of life or before the age of two. The researchers found that the younger the child, the more extensive the brain damage—particularly in the frontal and parietal lobes, which are responsible for movement, language, and thinking. The study, published in Neuroscience and Behavioral Physiology, provides insights into how age can influence the nature and extent of brain lesions and lays the groundwork for developing personalised rehabilitation programmes for children who experience a stroke early in life.
Scientists Test Asymmetry Between Matter and Antimatter
An international team, including scientists from HSE University, has collected and analysed data from dozens of experiments on charm mixing—the process in which an unstable charm meson oscillates between its particle and antiparticle states. These oscillations were observed only four times per thousand decays, fully consistent with the predictions of the Standard Model. This indicates that no signs of new physics have yet been detected in these processes, and if unknown particles do exist, they are likely too heavy to be observed with current equipment. The paper has been published in Physical Review D.
HSE Scientists Reveal What Drives Public Trust in Science
Researchers at HSE ISSEK have analysed the level of trust in scientific knowledge in Russian society and the factors shaping attitudes and perceptions. It was found that trust in science depends more on everyday experience, social expectations, and the perceived promises of science than on objective knowledge. The article has been published in Universe of Russia.
Scientists Uncover Why Consumers Are Reluctant to Pay for Sugar-Free Products
Researchers at the HSE Institute for Cognitive Neuroscience have investigated how 'sugar-free' labelling affects consumers’ willingness to pay for such products. It was found that the label has little impact on the products’ appeal due to a trade-off between sweetness and healthiness: on the one hand, the label can deter consumers by implying an inferior taste, while on the other, it signals potential health benefits. The study findings have been published in Frontiers in Nutrition.