AI adoption and the demand for managerial expertise

Liudmila Alekseeva, José Azar, Mireia Giné and Sampsa Samila

No 752906, Working Papers of Department of Management, Strategy and Innovation, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven

Abstract: This paper investigates how AI adoption influences the demand for managers and their required skills. Using a skills-based measure of AI adoption derived from Lightcast job postings data, we show that when firms intensify their AI adoption they experience a significant increase in the number and share of managerial vacancies, indicating that AI implementation drives a greater demand for managerial roles. Furthermore, AI adoption shifts the skill requirements for managers, increasing the demand for cognitive and interpersonal skills such as collaboration, creativity, stakeholder management, and data analysis, while reducing the need for routine administrative skills like scheduling and budgeting. These findings suggest that AI reshapes organizations by increasing the importance of managerial expertise and by changing managerial roles and responsibilities within firms.

Keywords: artificial intelligence; managers; skills; technology adoption (search for similar items in EconPapers)
Pages: 60
Date: 2024-11-15
Note: paper number MSI_2412
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Published in FEB Research Report MSI_2412, pages 1-60

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Persistent link: https://EconPapers.repec.org/RePEc:ete:msiper:752906

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