Indeed chief economist says execs are 'overestimating the speed' of AI transformation in the labor market

While discussions surrounding artificial intelligence (AI) are prominent in corporate boardrooms, it is primarily a select group of large employers that are driving AI-related hiring in the United States.

"I think we're overestimating the speed at which we're going to see this transformation," stated Svenja Gudell, chief economist at Indeed, during a panel session at the 2026 Fortune Workplace Innovation Summit held in Atlanta. "I think we're underestimating the long-term impact it will have," she emphasized regarding the pace of AI's transformation within the labor market.

Gudell's remarks came in response to a query from Fortune's Ruth Umoh, who highlighted Indeed's Hiring Lab analysis based on the data collected in 2025. By late 2025, 5.7% of U.S. firms had posted at least one AI-related job on Indeed, an increase from approximately 2% in 2018. Furthermore, about 4% of all job postings referenced AI, as per Indeed's report published in January. Remarkably, nearly 90% of AI-related job postings originated from just 1% of companies, with adoption rates soaring to 49.9% among the largest firms, contrasted with only 1.3% among the smallest third. According to Indeed's May 14 report, over 5% of job postings on the platform as of April 2026 included mentions of AI.

AI will profoundly alter our operational methods, "not tomorrow or the day after, but months and years into the future," Gudell asserted. She stressed the importance of leveraging data to act now, initiating necessary preparations for the transformations ahead. Though she acknowledged the challenges that come with these tasks, Gudell reiterated their significance. She also noted that the sectors most exposed to AI are currently experiencing a rise in job demand.

In the United States, AI hiring is predominantly observed among large technology companies, hyperscalers, and significant consulting and professional services firms. However, the adoption of AI technologies is gradually extending into additional sectors.

Becky Schmitt, chief people officer at PepsiCo, also participated as a panelist, offering insights into maintaining organizational unity during the AI transformation. Managing the disparity in pace between different areas of the organization is a current focus for the company, along with determining which scalable components to invest in, Schmitt noted.

Regarding scaling recommendations, she stated, "The way that you make it scalable is by having standard processes, accepting common data sets, and ensuring core job functions remain translatable across different regions." This approach facilitates seamless technological integration, she explained.

Schmitt further warned against allowing individual departments to operate as separate entities, suggesting, "If you want to let everybody have their own kingdom, you're going to invest heavily in one part of the world, and then it can't go someplace else."