French Economic Growth and the Impact of Artificial Intelligence
Is French economic growth benefiting from the artificial intelligence revolution? The arrival of ChatGPT (OpenAI) and other models (Claude, Gemini) is raising great hopes. These technologies promise productivity gains and new wealth.
“In all countries, this development is likely to affect economic activity through several channels in the short term, both in terms of demand and supply, due to its rapid spread,” noted the National Institute of Statistics and Economic Studies (Insee) in its economic outlook released on Tuesday.
But while the United States are already reaping the rewards of this revolution, France is still struggling to assess the true consequences on its economic fabric.
Investments Represent a Third of American Growth
Across the Atlantic, artificial intelligence contributes to growth primarily through business investments. These investments include software and IT equipment, as well as data centers, according to Insee. According to their data, in the fourth quarter of 2025, investment in IT equipment (excluding data centers) represented 2.2% of GDP in value, while investment in software was 2.5%. This marks an increase of 0.3 points for the former and 0.2 points for the latter compared to mid-2022 when ChatGPT was not yet on the market.
Data centers have sprung up like mushrooms across the American territory. However, at the moment, they only represent 0.1% of GDP. In total, a third of American growth in 2025 depends on investments in artificial intelligence.
This surge in investment is reminiscent of the period preceding the Internet bubble. “Over the recent period, the year 2025 stands out for a digital investment contribution of a magnitude comparable to that observed at the end of the 1990s,” wrote the institute.
French Consumption Not Boosted by AI
The AI revolution can also contribute to growth through consumption in the United States. Household wealth partly derives from financial markets. When household assets increase, they can consume more. The rise of artificial intelligence has pushed financial markets to new highs, especially in technology stocks.
However, this analysis has its limits: generally, it is the wealthier households that benefit from the profits linked to artificial intelligence. “The effect on consumption is likely positive but moderate on average, given a lower propensity to consume at the top of the distribution,” added the institute.
Additionally, the valuation records of technology stocks have raised concerns about a market reversal or even an AI bubble burst.
In France, investment allocation is more challenging. The sector that could invest the most in AI is information and communication. While it contributes to economic activity, its contribution to growth “tends to decrease,” according to Insee, far from the American situation. Regarding data centers, Insee specifies that there are no comparable statistical series to those of their American counterparts. 352 centers were reportedly in operation in 2024, according to Ademe.
Job Risk
Concerning jobs, AI spread rapidly in companies, whether in the United States or in Europe. A quarter of employees already use this technology at work, according to Insee. It has also improved productivity.
But this revolution also contributes to job reductions in sectors linked to IT, both in the United States and in France. For example, employment has decreased in the sector of IT activities and information services in France since 2023, “while the value added maintains a trajectory with no marked inflection,” the institute concluded.
It is mainly the younger population that is affected by job declines. By the end of 2025, employment for those aged 15-29 decreased by 7.4% in IT and 5.8% in publishing. In comparison, the entire business sector only decreased by 0.7%. However, in France, “the effects on overall employment remain largely undetermined.”
