Assessing the impact of AI skills on firm productivity: a cross-country analysis

Ahmed Bounfour, Alberto Nonnis and Shengxing Yang

Digital Transformation and Society, 2025, vol. 4, issue 3, 299-311

Abstract: PurposeArtificial intelligence (AI) is acknowledged for its long-term impact as a general-purpose technology, but it is also reshaping the skills and competences required in the job market. As discrepancies in workforce skills between countries play an important role in shaping differences in AI absorption, this paper explores the impact of evolving AI skills on firm productivity at the macro level, using a panel of 15 countries over the period 2017–2022.Design/methodology/approachThe study employs the Relative AI Hiring Index from the Stanford Institute for Human-Centered AI to track changes in the AI-skilled labor force. A two-stage procedure is used to evaluate its impact on productivity. First, we retrieve proxies for total factor productivity using production function-specific estimation methods. Second, panel regressions are used to evaluate the impact of the AI skills on productivity.FindingsThe results highlight short-term positive effects that emerge with a lag of a quarter, underscoring the necessity of continuously renewing investment in AI-skilled labor to achieve short-term benefits.Originality/valueGiven that AI is a relatively new technology, research on its impact on productivity, particularly through the enhancement of skills and competences in the job market, is rather scarce. The paper aims to improve the understanding of this phenomenon in the short term.

Keywords: Artificial intelligence; AI; Productivity; TFP; Workforce; Human capital; Skills (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:dtspps:dts-06-2024-0090

DOI: 10.1108/DTS-06-2024-0090

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