Artificial Intelligence and High-Skilled Work: Evidence from Analysts

Jillian Grennan and Roni Michaely

No 20-84, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: Policymakers fear artificial intelligence (AI) will disrupt labor markets, especially for high-skilled workers. We investigate this concern using novel, task-specific data for security analysts. Exploiting variation in AI's power across stocks, we show analysts with portfolios that are more exposed to AI are more likely to reallocate efforts to soft skills, shift coverage towards low AI stocks, and even leave the profession. Analyst departures disproportionately occur among highly accurate analysts, leaving for non-research jobs. Reallocating efforts toward tasks that rely on social skills improve consensus forecasts. However, increased exposure to AI reduces the novelty in analysts' research which reduces compensation.

Keywords: artificial intelligence; big data; technology; automation; sell-side analysts; job displacement; labor and finance; social skills; non-cognitive skills; tasks; skill premium; skill-biased technological change; compensation (search for similar items in EconPapers)
JEL-codes: G17 G24 J23 J24 J31 O33 (search for similar items in EconPapers)
Pages: 72 pages
Date: 2020-08
New Economics Papers: this item is included in nep-big, nep-lma and nep-tid
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3681574 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp2084

Access Statistics for this paper

More papers in Swiss Finance Institute Research Paper Series from Swiss Finance Institute Contact information at EDIRC.
Bibliographic data for series maintained by Ridima Mittal ().