The Demand for AI Skills in the Labor Market

Azar, José, Liudmila Alekseeva, Mireia Gine, Sampsa Samila and Bledi Taska

No 14320, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We document a dramatic increase in the demand for AI skills in online job postings over the period 2010-2019. The demand for AI skills is highest in IT occupations, followed by architecture/engineering, life/physical/social sciences, and management. The sectors with the highest demand for AI are information, professional services, and finance. At the firm level, higher demand for AI skills is associated in the cross-section with larger market capitalization, higher cash holdings, and higher investments in R\&D. We also document a large wage premium for job postings that require AI skills, as well as a wage premium for non-AI vacancies posted by firms with a high share of AI vacancies. Interestingly, managerial occupations have the highest wage premium for AI skills.

Keywords: Artificial intelligence; Machine learning; Wage premium; Technology diffusion (search for similar items in EconPapers)
Date: 2020-01
New Economics Papers: this item is included in nep-big
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Citations: View citations in EconPapers (7)

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