AI Adoption and Firm Demand for Workers and Skills: Insights from Online Job Postings

Abstract

The latest Artificial Intelligence (AI) tools can perform some of the complex tasks that highly skilled and well-paid workers perform. To investigate their effects on demand for workers and skills, we compared hiring trends in Australian firms that were adopting AI and those that were not. Job postings grew significantly faster in firms that had adopted AI, even after controlling for firm size, geography and industry. This accelerated growth in job postings included occupations that were highly exposed to AI. The number of skills sought in job postings was also growing faster for AI exposed occupations, especially if they were being recruited by AI adopting firms. Some formerly non-AI skilled roles were transitioning to become AI skilled roles. These findings suggest that AI tools are now being used to augment rather than replace workers and that efforts to promote AI adoption and upskilling benefit both workers and firms.