A report says that the sectors of global economy most exposed to artificial (AI) have seen a marked increase in productivity and are commanding a significant wage premium.
A PwC report found that productivity growth in areas of the economy with the highest AI penetration was five times faster than in sectors less exposed to AI.
PwC reported that, in the UK (one of the 15 countries included in the report), job postings requiring AI skills grew 3.6 times faster than all other job listings.
Employers in the UK are willing to pay an average of 14% more for jobs requiring AI skills. The highest premiums were paid by employers in the legal and IT sectors. The UK saw a marginally higher increase in productivity than the average global rate in the sectors that are more affected by AI, such as professional services, financial services, and information technology.
There has been a lot of debate since the launch of ChatGPT late in 2022 about the job implicationsof this new era. However, PwC stated that AI had an impact on the employment market for over ten years. Postings for AI-specialist jobs increased seven-fold from a low starting point in 2012, while all other job postings doubled.
PwC’s global AI jobs barometer for 2024 found that AI was being used by companies to solve the problem of a shortage of workers.
It said that this could be good for many countries facing shrinking populations of working age and unmet labour needs in many sectors. AI can ensure that there is enough labour to allow the economy to achieve its full potential.
One study, from the left-of-centre Institute for Public Policy Research thinktank, has predicted that up to
Barret Kupelian is the chief economist of PwC UK. He said that “our findings show that AI can create new industries, transform jobs markets, and possibly push up productivity growth rate.” We are just at the beginning of the iceberg in terms of economic impact. Our findings show that AI adoption is currently concentrated within a few industries. Once the technology becomes more advanced and spreads to other sectors, it could have a transformative effect.
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