New research conducted by consultancy PwC has found that jobs that require artificial intelligence (AI) skills offer significantly higher wages than those that do not. In the United States, AI-related roles pay an average of 25% more than comparable jobs in the same field that do not require AI skills. This wage premium is 14% in the United Kingdom and 11% in Canada. The differences are most pronounced in certain professions, with lawyers in the US with AI skills earning a 49% wage premium and financial analysts a 33% premium compared to workers in equivalent traditional jobs.
PwC’s report is based on an analysis of over 500 million job ads across 15 countries in North America, Europe, and Asia. According to the report, the number of jobs requiring AI skills has grown 3.5 times faster than the total of all jobs between 2012 and 2023. This trend is expected to intensify as AI skills become more in demand, creating new roles while reducing the demand for skills that can be efficiently done using AI. The menu of skills required by employers in occupations exposed to AI is changing about 25% faster than those not exposed to AI, leading to a shift in the job market.
The report also highlights the impact of AI on labor productivity, particularly in industries where AI can be more readily used to perform tasks, such as financial services. Labor productivity in these industries is growing 4.8 times faster than in other sectors. This increase in productivity is essential for boosting real wage growth and sustaining economic growth, especially in countries like the UK where productivity growth has been slow since the global financial crisis. AI has the potential to be the missing piece in the UK’s productivity puzzle, bringing a boost to the economy, wages, and living standards.
According to Mehdi Sahneh, a senior economist at PwC UK, countries and sectors with a high demand for AI skills tend to see higher wage premiums, especially when there is a scarcity of skilled professionals. As the adoption of AI continues to grow, the trend of changing skill requirements is likely to intensify, creating new roles while reducing demand for some skills that can be done more efficiently using AI. AI has the potential to drive innovation and change in the labor market, impacting how work is done and the skills that are in demand.
Overall, the research emphasizes the growing importance of AI skills in the job market and the impact on wages, productivity, and economic growth. As AI continues to be integrated into various industries, the demand for AI skills is expected to increase, leading to higher wages for those with these skills. Additionally, AI has the potential to drive productivity growth in industries where it can be effectively utilized, ultimately benefiting the economy and living standards. It is clear that AI is reshaping the job market and the skills required for success in the digital age.
