How do US visa restrictions on skilled foreign workers affect AI companies?

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1. 1

   Keeping Top AI Talent in the United States

   Research paper (https://cset.georgetown.edu/publication/keeping-top-ai-talent-in-the-united-states/ et al.)Published Dec 1, 2019Checked Oct 9, 2026

   “Talent is core to U.S. competitiveness in artificial intelligence, and international graduate students are a large source of AI talent for the United States. Retaining them in this country as they transition into the workforce is key. Graduate student retention has historically been a core U.S. strength, but that strength is endangered by recent events.”

2. 2

   Substituting Talent with Transactions: Acquisitions as Responses to Immigration Restrictions

   Academy of Management Proceedings (Friedmann et al.)Published Sep 1, 2025Checked Oct 9, 2026

   “We examine how firms respond to talent scarcity caused by restrictive immigration policies. We argue that when firms cannot build capabilities internally through hiring, they alter their boundaries by engaging in corporate acquisitions to make up for the foregone talent and capabilities. Using data on 3,861 U.S. firms and their use of the H-1B visa program (2001-2020), we leverage two exogenous shocks—the 2004 H-1B cap reduction and the 2007-2008 visa lottery—and find causal evidence that firms make more acquisitions as their exposure to immigration restrictions rises. This effect is stronger for deals with purposes related to the skills of the foregone talent, for small acquisitions, for domestic targets, and for targets in places with higher concentrations of skilled workers. Our findings contribute to research on corporate strategy, strategic human capital, and immigration policy.”

3. 3

   Skilled immigration frictions as a barrier for young firms

   Research paper (Mandelman et al.)Published Feb 5, 2024Checked Oct 9, 2026

   “This paper studies the impact of skilled immigration policy frictions in the United States on technology-intensive firms by age cohorts.We use firm-level data and a general equilibrium model with endogenous firm entry and exit.The empirical results show that skilled immigration policy frictions directly influence young firm dynamics in technology-intensive sectors by affecting firm survival.Our general equilibrium model incorporates skilled foreign labor and immigration policy frictions that mimic the H-1B policy and matches the age distribution of firms in high-technology sectors, showing also that increased entry of younger firms leads to a greater exit of older firms.”

4. 4

   Skilled Immigration and the Employment Structures of U.S. Firms

   National Bureau of Economic Research (Kerr et al.)Published Nov 1, 2013Checked Oct 9, 2026

   “We study the impact of skilled immigrants on the employment structures of U.S. firms using matched employer-employee data.Unlike most previous work, we use the firm as the lens of analysis to account for a greater level of heterogeneity and the fact that many skilled immigrant admissions are driven by firms themselves (e.g., the H-1B visa).OLS and IV specifications find rising overall employment of skilled workers with increased skilled immigrant employment by firm.Employment expansion is greater for younger natives than their older counterparts, and departure rates for older workers appear higher for those in STEM occupations compared to younger worker.”

5. 5

   Immigration Policy and the Global Competition for AI Talent

   Research paper (Huang & Arnold)Published Jun 1, 2020Checked Oct 9, 2026

   “Current immigration policies may undermine the historic strength of the United States in attracting and retaining international AI talent. This report examines the immigration policies of four U.S. economic competitor nations—the United Kingdom, Canada, France, and Australia—to offer best practices for ensuring future AI competitiveness.”

6. 6

   Immigration Policy and the U.S. AI Sector

   Research paper (Arnold et al.)Published Sep 1, 2019Checked Oct 9, 2026

   “As the artificial intelligence field becomes more developed globally, the United States will continue to rely on foreign AI talent to stay ahead of the curve. Here are our preliminary recommendations to maintain current U.S. leadership, bolster the domestic AI workforce and improve the outlook for the future.”

7. 7

   Firm Dynamics and Immigration: The Case of High-Skilled Immigration

   National Bureau of Economic Research (Waugh)Published May 1, 2017Checked Oct 9, 2026

   “This paper shows how the dynamics of the firm yield new insights into the short-and long-run economic outcomes from changes in immigration policy.I quantitatively illustrate these insights by evaluating two policies: an expansion of and the elimination of the H-1B visa program for skilled labor.A change in policy changes firms' entry and exit decisions as they dynamically respond to changes in market size.The dynamic response of firms amplifies changes in relative wages as labor demand shifts with the distribution of firms.Firms' responses also lead to the rapid accrual of aggregate gains/losses in output and consumption.The welfare implications of policy changes depend critically on who bears the burden of creating new firms.”