Firms are increasingly adopting artificial intelligence (AI) technologies, yet little is known about their impact on employees. A recent study shows that AI adoption leads to significant increases in sales per employee, with no significant changes in total employment. However, there are differences in the impact on workers depending on their roles.
AI adoption has been linked to a decrease in routine cognitive tasks, such as data entry and processing, and an increase in non-routine cognitive tasks, including problem-solving and decision-making. This shift in task composition is associated with changes in the skill requirements of jobs, with a greater demand for high-skilled workers and a reduction in demand for low-skilled workers.
The study also reveals that AI adoption has led to notable wage increases for high-skilled workers, while wages for low-skilled workers have remained relatively stagnant. This may suggest that the benefits of AI are not equally distributed among workers, potentially exacerbating income inequality.
While AI technologies can improve firm performance and productivity, they also alter the nature of work and the distribution of wages. Policymakers and business leaders should consider these implications when implementing AI technologies.
Go to source article: https://www.nber.org/papers/w28922