The Impact of Artificial Intelligence on Skills at Work in Denmark

33 Pages Posted: 8 Jul 2021

See all articles by Jacob Holm

Jacob Holm

Aalborg University Business School

Edward Lorenz

Institute of Right and Economy of the Firm and Industry (IDEFI) - National Center for Scientific Research (CNRS); Université de Nice Sophia Antipolis

Date Written: June 29, 2021

Abstract

Based on a unique dataset on the use of artificial intelligence (AI) among employees in Denmark, we investigate within-job relationships between AI use and skill requirements. We show that the effects of AI are varied and depend on providing orders to humans versus providing information for further human handling and in which occupation it is used. AI may enhance or augment skills through, for example, the increased use of high-performance work practices, or it may simply increase work pace constraints and reduce employee autonomy. The results imply that the diffusion of AI can increase inequalities in the labour market by augmenting skills used in high-skill jobs while having relatively more adverse impacts on other jobs. We use additive noise modelling to establish the likely direction of causality in our results and find that the direction of causality is from AI use to skill requirements.

Keywords: Artificial intelligence, skills, job requirements approach, constraints, autonomy, learning, high-performance work practices, additive noise modelling

Suggested Citation

Holm, Jacob Rubæk and Lorenz, Edward, The Impact of Artificial Intelligence on Skills at Work in Denmark (June 29, 2021). Available at SSRN: https://ssrn.com/abstract=3876347 or http://dx.doi.org/10.2139/ssrn.3876347

Jacob Rubæk Holm (Contact Author)

Aalborg University Business School ( email )

Aalborg, DK-9220
Denmark
+99408247 (Phone)

Edward Lorenz

Institute of Right and Economy of the Firm and Industry (IDEFI) - National Center for Scientific Research (CNRS) ( email )

250, Av. A. Einstein
Sophia-Antipolis, 06250
France

Université de Nice Sophia Antipolis

Sophia Antipolis
B.P. 70
Nice, 06108
France

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