Analysis of Finnish wage data showed that after workers were exposed to generative AI, salaries increased by €78 per month on average across all occupations, the equivalent of 2 percent of the average salary in Finland.

Fact of the Week: Finnish Employees Who Were Highly Exposed to Generative AI Experienced Greater Wage Growth

Data from the National Center for Science and Engineering Statistics shows that 13.7 percent of firms who use artificial intelligence experienced an increase in total employment.

Fact of the Week: Over 13 Percent of Firms That Use Artificial Intelligence Have Expanded Their Workforce

If the United States wants to be globally competitive in automation-related technologies, especially vis-à-vis China, then policies to ensure higher wages for low-skilled workers are key, including expansionary fiscal and monetary policy for full employment, stronger limits on low-skill immigration, and a higher minimum wage.

Fact of the Week: Every 1 Percent Increase in Wages for Low-Skilled Jobs Leads to a 2 to 5 Percent Increase in Automation Innovation

New research by economists at the University of Zurich tests the hypothesis that rising low-skill wage is a driver of automation by examining firm-level data of automation patents.

Fact of the Week: A 1 Percent Increase in Low-Skill Wages Increases Automation Patents by More Than 2 Percent Domestically and 4 Percent Abroad

In 2019, the AI workforce made up 0.37 percent of the total workforce in the United States, which ranked 10th out of 24 OECD nations and was only slightly higher than the OECD average of 0.34 percent.

Fact of the Week: US Ranks 10th Among OECD Countries in Share of Employees With AI-Related Skills

Automation’s effect on labor demand has long been seen by the public as negative. Japanese researchers challenged this perception when they examined robots’ impact on employment across a range of Japanese industries from 1978 to 2017.

Fact of the Week: In Japan, a 1 Percent Increase in Robot Adoption Due to Lower Prices Leads to a 0.28 Percent Increase in Employment

A report finds that firms that are 125 miles from the closest AI hotspot, defined as an area with over 1000 AI publications or patents, experienced 17 percent lower AI job growth between 2007 and 2019.

Fact of the Week: Commuting Areas Far From AI Hotspots Experienced 17 Percent Lower Growth in AI Jobs

If automation proves to have a more positive impact on employment than once previously thought, then it could greatly alter the national conversation surrounding workforce development and technological innovation.

Fact of the Week: One Dollar of Automation Spending Increases Sales by 37 Cents and Raises Profits by 78 Cents While Driving Down Consumer Prices by 5 Cents

From 2005 to 2016, economists Jon Chung and Yong Suk Lee found that, while robots initially led to lower employment and wages for affected workers, that trend reversed as firms and workers adjusted to the broader adoption of robots in production.

Fact of the Week: AI-Enabled Automation Is Positively Associated With Changes in Occupation Employment Shares

Related

Fact of the Week: Finnish Employees Who Were Highly Exposed to Generative AI Experienced Greater Wage Growth

Fact of the Week: Over 13 Percent of Firms That Use Artificial Intelligence Have Expanded Their Workforce

Fact of the Week: Every 1 Percent Increase in Wages for Low-Skilled Jobs Leads to a 2 to 5 Percent Increase in Automation Innovation