The Demand for AI Skills in the Labor Market
60 Pages Posted: 25 Oct 2019 Last revised: 10 May 2021
Date Written: October 16, 2019
Using detailed data on skill requirements in online vacancies, we estimate the demand for AI specialists across occupations, sectors, and firms. We document a dramatic increase in the demand for AI skills over 2010-2019 in the U.S. economy across most industries and occupations. The demand is highest in IT occupations, followed by architecture and engineering, scientific, and management occupations. Firms with larger market capitalization, higher cash holdings, and higher investments in R&D have a higher demand for AI skills. We also document a wage premium of 11% for job postings that require AI skills within the same firm and 5% within the same job title. Managerial occupations have the highest wage premium for AI skills. Firms demanding AI skills more intensively also offer higher salaries in non-AI jobs.
Keywords: artificial intelligence, machine learning, wage premium, technology diffusion
JEL Classification: J23, J31, O33
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