Evidence on the Adoption of Artificial Intelligence: The Role of Skills Shortage

Paolo Carioli, Dirk Czarnitzki and Fernández, Gastón P. ()
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Paolo Carioli: KU Leuven, Dept. of Management, Strategy and Innovation
Dirk Czarnitzki: KU Leuven, Dept. of Management, Strategy and Innovation; Center for R&D Monitoring (ECOOM) at KU Leuven, and Leibniz Centre for European Economic Research (ZEW), Mannheim
Fernández, Gastón P.: Luxembourg Institute of Socio-Economic Research (LISER)

No 18793, IZA Discussion Papers from IZA Network @ LISER

Abstract: Artificial Intelligence (AI) is considered to be the next general-purpose technology, with the potential of performing tasks commonly requiring human capabilities. While it is commonly feared that AI replaces labor and disrupts jobs, we instead investigate the potential of AI for overcoming increasingly alarming skills shortages in firms. We exploit unique German survey data from the Mannheim Innovation Panel on both the adoption of AI and the extent to which firms experience scarcity of skills. We measure skills shortage by the number of job vacancies that could not be filled as planned by firms, distinguishing among different types of skills. To account for the potential endogeneity of skills shortage, we also implement instrumental variable estimators. Overall, we find a positive and significant effect of skills shortage on AI adoption, the breadth of AI methods, and the breadth of areas of application of AI. In addition, we find evidence that shortage on academic qualifications and STEM skills relates to firms adopting AI.

Keywords: Artificial Intelligence; skills shortage; CIS data (search for similar items in EconPapers)
JEL-codes: J23 J24 O33 (search for similar items in EconPapers)
Date: 2026-07
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