The Demand for AI Skills in the Labor Market
38 Pages Posted: 25 Oct 2019
Date Written: October 16, 2019
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 in- formation, professional services, and finance. At the firm level, a 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
JEL Classification: J23, J31, O33
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