Dashboard/High-Skill AI Wage Premium

Wage Impact | Current estimate | Data through Aug 2026

High-Skill AI Wage Premium

+29.4%8.5–62%

Workers with strong AI and machine learning skills currently earn about 29.4% more than the median worker in comparable roles. This "AI premium" reflects both scarcity of talent and the outsized productivity gains AI-skilled workers deliver. A rising premium signals that AI skills are becoming more, not less, valuable.

This is observed data from real-world surveys and measurements, not a prediction. See the full methodology for details on weighting, source validity, and recency bias.

Best estimate from Oxford Internet Institute (Bone, Ehlinger, Stephany) (Verified Data & Research)
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Indicators Over Time

The chart below tracks how this estimate has shifted over time as new research and data emerge. Every source is color-coded by evidence quality; use the tiers below to filter what appears on the chart and in the weighted average above.

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Note: The estimates here run from 3% to 62%, and the gap is mostly about what gets measured. The high numbers come from job advertisements: what employers offer for roles that ask for AI skills. The low numbers come from workers' actual paychecks. Advertised pay runs ahead of realized pay because the roles asking for AI skills are also more senior, more urban, and concentrated in industries that paid well already — so a posting premium credits AI for a gap that is partly seniority and location. Read the postings figures as the price of the job and the worker-level figures as the return to the skill. Because these studies bracket different quantities rather than track one over time, the graph shows no trend line.

Confidence range
Data type
Postings
Survey
Employment

Directional research signals

Studies that point in a clear direction but give no single number to chart — e.g. “entry-level hiring fell” or “no measurable displacement detected.” They are not counted in the average above. Stacked blocks show net evidence per month; positive and negative signals cancel. Hover any column to see the studies.

202420252026+4+2

Each data point is from a different source. Dots are color-coded by evidence tier. Click any dot to jump to its source.

Sources (54)

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AI on the Factory Floor: Evidence from Manufacturing Job Postings

Fed FEDS Note: AI-skill manufacturing postings pay ~70% more; production roles ~30% (2023+)

Federal Reserve Board FEDS Notes (Maria D. Tito)Sep 30, 2026Research
Show excerpt

Among all manufacturing positions, postings requiring AI skills are associated with wages that are, on average, around 70 percent higher than all manufacturing posted wages over the sample period, with substantial volatility likely stemming from the small sample of AI-related postings and shifts in which types of positions require these skills.

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AI Exposure Isn’t Squeezing Advertised Pay in the US — It’s Boosting It

Indeed: exposed-occupation pay gap since 2021 ~17 pts senior, ~12 mid, 2 entry

Indeed Hiring Lab (Jack Kennedy)Sep 17, 2026Institutional
Show excerpt

At the senior level, the gap is largest and opens earliest: More-exposed pay grew 45% from its 2021 level by mid-2026, compared with 28% for less-exposed pay, a gap of about 17 points. Mid-level roles show a clear but smaller gap of about 12 points, opening from around 2024. Finally, at the entry level, there is only a modest 2-point gap.

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Economic Scenarios for Transformative AI

Anthropic Institute: extreme scenario pays non-cognitive +33.6% vs cognitive -11.5%

The Anthropic Institute (Korinek, Jones, Sacher, Cotter, McCrory)Sep 1, 2026Institutional
Show excerpt

Task-based model mapping AI capability, diffusion, productivity gain, automation share and reinstatement into paths for GDP, the labor share, wages, reallocation and unemployment to 2030. Cognitive occupations are SOC 11-29, 41 and 43 (management, professional, sales and office work), 62.4 percent of employment. "In the modest change scenario, AI acts like a 'normal technology' over the next five years and has small macroeconomic effects. In the extreme scenario, AI is transformative: by 2030 GDP is 32 percent above its no-AI path and nearly one in five cognitive workers is unemployed." Reviewed by Acemoglu, Autor, Moll, Nakamura, Restrepo, Romer and Steinsson among others, who were not asked to endorse its conclusions.

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The Wage Effects of Generative AI

Azar et al.: GenAI skill premium coexists with lower cell-level wages

IESE Business School (Azar, Giné, Sanz-Espín)Aug 21, 2026Institutional
Show excerpt

Workers who report GenAI-related skills receive a conditional starting-wage premium of approximately 8-9 percent. At the same time, the coefficient on the cell-level GenAI worker share is -0.151 when entered without predetermined exposure and -0.122 when both measures are included. There is no contradiction between these findings. A worker who reports GenAI-related skills may command a premium relative to otherwise comparable workers, while starting wages decline in cells where those skills become more prevalent. The authors treat these skill-based exercises as descriptive conditional associations, not causal returns to acquiring GenAI skills, because reported skills may respond to wages and worker composition.

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The Impact of AI on the U.S. Labor Market: Early Evidence from Observed Adoption

Apollo: management/professional wages -4.1% vs non-exposed peers

Apollo Global ManagementJul 30, 2026Institutional
Show excerpt

Management and professional occupations also had significant impacts on their real wage growth, as it fell 4.1% relative to non-exposure peers. Blue-collar workers showed no statistically significant effects. Measures a growth differential versus non-exposed occupations, not a premium over the median wage.

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AI Labor Market Tracker: July 2026

Revelio: AI-exposure wage premium eroded from ~2% pre-ChatGPT to roughly zero

Revelio LabsJul 28, 2026Institutional
Show excerpt

The wage premium for AI-exposed work has eroded to roughly zero, falling from around 2% before ChatGPT's launch. Measured as the salary premium associated with a one-standard-deviation increase in posting-level AI exposure, not as a premium over the median wage.

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Google's AI & Economy ATLAS v1.0: Mapping Gemini Usage in the Economy

Google ATLAS: 1% higher occupation earnings → 2.5% more AI use; usage-wtd median $83K vs $62K

Google / Google DeepMind (Iscenko, Strand, Imas, Manyika et al.)Jul 23, 2026Research
Show excerpt

Google's AI & Economy ATLAS v1.0 (Iscenko, Strand, Chen, Imas, Manyika et al., Google/Google DeepMind, Jul 23 2026; reviewed by Diane Coyle and David Autor). 15M de-identified interactions across Gemini App, AI Mode, and Gemini API (Apr 6-19, 2026), mapped to 800+ occupations, 4,000 O*NET tasks, 300 ATUS activities, 150 countries, 140 languages. Work: 'AI adoption spans occupations covering just above 88% of US employment' (68% of detailed occupations) but 'penetration remains shallow' — 'AI is used for only 21% of total tasks in the median occupation with any AI use'; only 3% of occupations show usage for >75% of tasks. 'Attempts to automate tasks end-to-end represent less than 10% of AI conversations in non-routine cognitive work'; >25% for routine cognitive work. Non-routine cognitive tasks = 35% of O*NET universe but 65% of work interactions. Wages: 'a 1% increase in an occupation's median earnings is associated with a more than 2.5% increase in AI usage intensity'; Gemini-weighted median salary $82,919 vs $62,252 employment-weighted national median. Home: 86% of conversational use is non-work; government/civic queries over-represented ~20x vs time spent; household time-savings valued at $14.9B-$149B/yr (0.5-5% scenarios). Global: 1% GDP/capita ↑ → 0.9% usage ↑; English only ~1/3 of conversations across 143 languages.

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Artificial intelligence exposure and occupational wages: Evidence from the United States

Atalay (JES): more AI-exposed US occupations pay more (671 jobs, cross-section)

Journal of Economic Studies (Atalay)Jun 24, 2026Research
Show excerpt

The results indicate a positive and statistically significant association between AI exposure and wages. Occupations with higher exposure tend to have higher wage levels.

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Are AI Certifications Worth It? What the Salary Data Shows

Revelio: certification pay gap is selection into certifying, not a causal return

Revelio Labs (Loujaina Abdelwahed)Jun 23, 2026Institutional
Show excerpt

Revelio Labs analysis of AI certifications recorded on workers' online professional profiles, built from a two-level taxonomy of over 500,000 unique AI-related certification names. "After controlling for occupation and seniority level, AI certification holders earn, on average, an $8,000 salary premium compared to non-certification holders." Revelio frames this as positive selection rather than a return to certification: "within any given occupation and seniority level, the workers choosing to get certifications are those who are already earning more than their peers." Certification share rose from 1-2% of all professional certifications pre-ChatGPT to nearly 30% by 2026, a 20x increase. A propensity-score-matched comparison finds certification takers see salary grow 18.1% in their next position versus 15.3% for non-takers.

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Agentic coding and persistent returns to expertise

Anthropic: expert Claude Code success 28-33% vs 15% novice (n=235K users)

Anthropic Economic Research (Hitzig, Massenkoff, Lyubich, Zhang, Heller, McCrory)Jun 16, 2026Research
Show excerpt

Anthropic Economic Research (Hitzig, Massenkoff, Lyubich, Zhang, Heller, McCrory — Jun 16, 2026). Analysis of ~400,000 Claude Code sessions from ~235,000 users between Oct 2025 and Apr 2026. Verified success rates: 'Novice: 15%; Intermediate/Expert: 28-33%.' Partial success rates: 77% (novice) vs 91-92% (intermediate/expert). Abandonment when troubled: novice 19% vs intermediate+ 5-7%. 'Every one of the ten largest occupations in our dataset lands within seven points of software engineers' (29-34% verified success). 'The estimated value of the average session rose by 27% between October and April.' Division of labor: 'people make about 70% of the planning decisions but only 20% of the execution decisions.' Work mix: code writing/fixing/testing 56%, ops 17%, planning/exploration 14%, analysis/prose 13%. Novice: ~5 actions, 600 words output/prompt; Expert: ~12 actions, 3,200 words/prompt.

PwC 2026 Global AI Jobs Barometer
PwC (Atkinson, Brown)Jun 15, 2026Institutional
Show excerpt

PwC 2026 Global AI Jobs Barometer (Atkinson & Brown, Jun 15, 2026). Analyzed 1+ billion job advertisements across 27 countries and territories, including 2.4M entry-level US jobs. Key findings: entry-level roles most exposed to AI are 'seven times more likely to require traditionally senior-level skills'; job openings for 'seniorised' entry-level roles grew 35% since 2019 while other entry-level roles declined 10%. AI-skills wage premium reached 62% (up from 57% in the 2025 barometer), ranging from 16% (government) to 118% (consumer markets). AI-skill jobs growing 69% vs 9% for the total jobs market — 'almost twice as high as 2024.' Companies most exposed to AI: 52% headcount growth vs 36% (least exposed); wage growth 24% vs 17%; productivity 34% vs 24% (2018-2025), with the top-20% 'super-stars' at 163% productivity gain. 'Professionalised' roles growing twice as fast with 42% faster salary increases. Technology/media/telecom: 11% AI job share; health: <1%.

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Generative AI in Daily Business Practice: Synthesis of Micro-Level Firm Evidence

Fregin et al.: high-skill AI augmenters capturing widening wage premium

Maastricht University (Fregin, Eijkenboom, Özgül-Persyn, Pardesi, Rounding — DOI 10.26481/umarpb.2026002e)May 7, 2026Research
Show excerpt

Synthesis of micro-level firm evidence finds generative AI already embedded in everyday business practice. Productivity gains in the near term come from task reallocation and upskilling rather than headcount reduction, with high-skill workers who effectively augment their output capturing a widening wage premium. The brief cautions that this benign short-run picture may mask longer-run structural displacement.

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Shaping Human Capital and Work Practices in a Changing Labor Market

Wittich: AI-complementary workers pulling away in wage inequality

Maastricht University (Anna-Lena Wittich)Apr 24, 2026Institutional
Show excerpt

The research highlights a growing divergence between workers who can complement AI tools and those whose skills are substituted by them, amplifying within-occupation wage inequality.

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What Makes New Work Different from More Work?

Autor et al.: tech-linked new work wage premium 4× other new work

MIT Stone Center / NBER (Autor, Chin, Salomons, Seegmiller)Apr 24, 2026Research
Show excerpt

The wage premium is four times larger for new work associated with technological change than for other types of new work. Workers with advanced degrees were 2.9 percentage points more likely to be employed in new work than high school graduates.

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Generative AI and Occupational Entry Barriers: The Labor-Supply Channel of Technological Change

Hosseini/Lichtinger: p90-p50 wage gap rises from 0.733 to 0.789 in combined GE model

SSRN (Hosseini, Lichtinger — Harvard)Apr 1, 2026Research
Show excerpt

In general equilibrium, overall wage dispersion rises modestly relative to baseline: the variance of log wages increases from 0.201 to 0.230, while the p90-p50 gap rises from 0.733 to 0.789.

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Forecasting the Economic Effects of AI

FRI: Rapid scenario → top 10% wealth share rises to 80% by 2050 (from ~72%)

Forecasting Research Institute (w/ Fed Chicago, Yale, Stanford, UPenn)Mar 31, 2026Research
Show excerpt

In a rapid AI scenario, economists forecast the fraction of wealth held by the wealthiest 10% of households rising to 80% by 2050 (from ~72% today).

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AI Narrows Performance Gaps — But Does That Mean It Reduces Inequality?

Lichtinger & Hosseini: Between-occupation inequality may widen from AI

Substack (Guy Lichtinger, Seyed M Hosseini)Mar 26, 2026Social
Show excerpt

If AI dramatically boosts the productivity of high-paying knowledge work while leaving lower-paid service occupations largely unaffected, between-occupation inequality could widen even as within-task inequality narrows.

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Anthropic Economic Index report: Learning curves

Anthropic: Skill-biased adoption deepening inequality channel

Anthropic (Massenkoff, Lyubich, McCrory, Appel, Heller)Mar 24, 2026Institutional
Show excerpt

early adopters with high-skill tasks have more successful interactions with Claude than later, less technical adopters. These early-adopting users may simultaneously be the most exposed to AI-driven disruption and most aided by AI in these initial, augmentative waves of adoption.

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Job Transformation, Specialization, and the Labor Market Effects of AI

Freund & Mann: Return to analytical skills falls; social/manual skills rise

Boston College / Arizona State (Freund, Mann)Mar 18, 2026Research
Show excerpt

AI raises the return to social and non-routine manual skills, while reducing the return to analytical skills. Workers with high analytical skills are thus over-represented among those who lose from the AI shock.

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The New Map of AI Work: San Jose Builds It & New York Scales It

CoworkingCafe: AI salaries $215K in San Jose, $128K in Dallas; geographic premium wide

CoworkingCafe (Yardi Systems)Mar 18, 2026News
Show excerpt

AI professionals earn $215,000, on average, in San Jose, CA — the highest in the country. But, with living costs 13% above average, that premium narrows. For comparison, in Dallas–Fort Worth, TX, $128,000 salaries stretch further with costs just 3% above average.

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Labor market impacts of AI: A new measure and early evidence

Anthropic: AI-exposed workers earn 47% more than unexposed workers

Anthropic (Massenkoff, McCrory)Mar 5, 2026Institutional
Show excerpt

Workers in the most exposed professions earn 47% more, on average, and are 16 percentage points more likely to be female

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Should you still major in computer science?

Cooper/ACS: Early-career CS salary $90K vs $55K all grads (2024)

Preston Cooper (Substack)Mar 4, 2026Social
Show excerpt

The median salary for early-career CS majors was $90,000 in 2024. The median salary for all recent college graduates was just $55,000.

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AI Quarterly Pulse Survey Q1 2026

KPMG: 68% recruiting new AI roles (architects, etc.)

KPMGMar 1, 2026Institutional
Show excerpt

45% of leaders are willing to pay 11% to 15% more for strong AI skills

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AI is simultaneously aiding and replacing workers, wage data suggest

Dallas Fed: AI exposure → +0.2pp wage growth for high-experience-premium occupations

Federal Reserve Bank of Dallas (J. Scott Davis)Feb 24, 2026Research
Show excerpt

Nominal average weekly wages nationwide have increased 7.5 percent, while the computer systems design sector has risen 16.7 percent — a 9.2 percentage point gap reflecting the AI-skill wage premium.

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OpenAI is paying workers $1.5 million in stock-based compensation on average

OpenAI: avg stock comp $1.5M; researcher total comp $763K–$1.44M

FortuneFeb 18, 2026Institutional
Show excerpt

OpenAI average stock-based compensation reached $1.5M per employee in 2025. Research scientist total compensation ranges from $763K to $1.44M. The company raised $6.6B in October 2024 at a $157B valuation.

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How AI is affecting productivity and jobs in Europe

CEPR/BIS: wage gains may accrue disproportionately to highly skilled workers

CEPR VoxEU (Aldasoro, Gambacorta, Pál, Revoltella, Weiss, Wolski)Feb 17, 2026Research
Show excerpt

The wage gains observed may accrue disproportionately to highly skilled workers, potentially widening income inequality.

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The Skills Mismatch Economy: Insights from the Wharton-Accenture Skills Index

Wharton-Accenture: AI shifting value to judgment and specialized skills

Wharton AI & Analytics Initiative / AccentureJan 22, 2026Institutional
Show excerpt

AI is redistributing economic value away from routine cognitive tasks toward judgment, coordination, and specialized knowledge.

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Task-Specific Technical Change and Comparative Advantage

Althoff & Reichardt: Architects, engineers, executives see absolute wage declines

CESifo (Althoff, Reichardt)Jan 21, 2026Research
Show excerpt

some occupations — such as architects, engineers, and executives — see absolute wage declines

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Bridging Skill Gaps for the Future: New Jobs Creation in the AI Age

IMF: postings with 4+ new skills pay up to 15% more

IMF Staff Discussion NoteJan 15, 2026Institutional
Show excerpt

The presence of a new skill in a vacancy is associated with about 3 to 3.4 percent higher wages. The wage premium is higher when employers demand multiple new skills, reaching 15.1 percent in the United Kingdom for vacancies listing four or more new skills and 8.5 percent in the United States.

AI Salary Statistics 2026: Global Compensation Trends
Index.devJan 5, 2026News
Show excerpt

AI/ML engineers median total compensation reached $185K in 2025, with top-tier researchers commanding $500K-$1M+. The premium over general software roles widened to 35%.

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Labor Market Effects of Generative AI

Stanford: adoption concentrated among higher-earning, college-educated workers

Stanford / World BankDec 11, 2025Research
Show excerpt

Adoption concentrated among younger, college-educated, higher-earning employees, reinforcing wage premium for AI-complementary skills.

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OECD Skills Outlook 2025

OECD Skills Outlook: AI-complemented workers may earn more; no AI skill premium estimated

OECDDec 9, 2025Research
Show excerpt

On the supply side, workers in occupations highly exposed to generative AI substitution may suffer reductions in earnings and employment opportunities (Hui, Reshef and Zhou, 2023; Liu et al., 2024), whereas those in jobs complemented by AI may increase their earnings (Qiao, Rui and Xiong, 2024).

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The Wage Divide is Widening Again and AI May Be to Blame

Revelio Labs: demand for $100K+ jobs up ~150% in 2 years; K-shaped recovery

Revelio LabsDec 1, 2025Institutional
Show excerpt

Demand for high-wage jobs with salaries over USD $100,000 has grown by about 150% over the past two years. Meanwhile, job postings for low-wage positions have fallen steadily for nearly two years.

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PwC AI Jobs Barometer 2025: The AI Wage Premium

PwC AI Jobs Barometer 2025: 56% AI-skill premium (superseded by 2026 edition, 62%)

PwCOct 15, 2025Research
Show excerpt

Workers with AI skills now command a 56% wage premium over non-AI peers, up from 25% just one year prior. AI roles median compensation reaches $157K.

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AI talent comes at a 30% salary premium

Fortune: AI talent commands 30% salary premium as demand outstrips supply

FortuneAug 11, 2025Institutional
Show excerpt

Companies hiring AI talent face a 30% salary premium as demand far outstrips supply, with experts warning that the cost of delayed AI hiring will only increase over time.

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AI is driving mass layoffs in tech, but it's boosting salaries by $18,000 a year everywhere else, study says

Fortune: non-tech AI-skilled roles pay 28% more (~$18K/year extra)

FortuneJul 27, 2025Institutional
Show excerpt

Job postings for non-tech roles that require AI skills offer 28% higher salaries — an average of nearly $18,000 more per year. The divide between AI-skilled and non-AI-skilled workers is widening.

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Beyond the Buzz: Developing the AI Skills Employers Actually Need

Lightcast: 51% of AI job postings now outside IT; 800% growth in non-tech gen AI roles since 2022

LightcastJul 23, 2025Institutional
Show excerpt

Analysis of 1.3B job postings finds AI skills command 28% salary premium (~$18K/year); 43% for workers with 2+ AI skills. 51% of AI-skill postings now outside IT/CS with 800% growth in non-tech gen AI roles since 2022.

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Conversation starter: are AI jobs booming or overhyped?

Glassdoor: AI jobs pay 25% premium; AI job listings up 123% YoY

Glassdoor Economic ResearchJul 1, 2025Institutional
Show excerpt

AI jobs pay more than similar jobs that do not focus on AI, with a typical premium of 25%. The share of AI jobs among new job listings increased 123% from 2023 to 2024.

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Expertise

NBER (Autor/Thompson): Automation of inexpert tasks raises wages in expert-intensive occupations

NBER (David Autor, Neil Thompson)Jun 20, 2025Research
Show excerpt

automation has raised wages and reduced employment in occupations where it eliminated inexpert tasks, but lowered wages and increased employment in occupations where it eliminated expert tasks.

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NVIDIA 2025 Proxy Statement

NVIDIA: median comp $301K, headcount up 21.6% YoY

NVIDIA (SEC Filing)May 1, 2025Research
Show excerpt

NVIDIA median employee total compensation was $301,233 in FY2025 (ending January 2025), with CEO-to-median pay ratio of 166:1. Total headcount reached 36,000, a 21.6% increase YoY.

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Generative AI at Work

QJE: less experienced workers improve most with AI

QJE (Brynjolfsson, Li, Raymond)May 1, 2025Research
Show excerpt

AI assistance increases customer service worker productivity by 15% on average. Less experienced workers improve most; AI disseminates best practices from top performers.

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AI Adoption and Inequality (IMF Working Paper 2025/068)

IMF model: AI cuts wage Gini 1.73pp (high earners exposed); wealth Gini +7.18pp

IMF (Rockall, Mendes Tavares, Pizzinelli)Apr 4, 2025Institutional
Show excerpt

Under the baseline assumption that occupational exposure to AI is directly associated with task displacement, the model predicts a decrease in the Gini coefficient for wage inequality of 1.73 p.p. Wealth inequality, however, is predicted to widen, with the wealth Gini rising 7.18 p.p. [...] roughly 60 percent of workers at the 90th income percentile are in an occupation where a large share of tasks can be performed by AI, at the 10th percentile only 15 percent of workers are in this situation. For comparison, the model calibrated to routine-biased automation produces a substantial increase in both wage and wealth inequality, with the Gini rising by 2.05 p.p. and 6.89 p.p., respectively.

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Augmenting or Automating Labor?

Marguerit: Augmentation AI fosters new work and raises wages for high-skilled occupations

LISER / arXiv (Marguerit)Mar 24, 2025Research
Show excerpt

Augmentation AI fosters new work and raises wages for high-skilled occupations.

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Skills or degree? The rise of skill-based hiring for AI and green jobs

Oxford/OII: AI skills premium 36% in STEM roles, vs 13% for master's degrees (10M UK vacancies)

Oxford Internet Institute (Bone, Ehlinger, Stephany)Feb 26, 2025Research
Show excerpt

AI skills and expertise are highly valued by employers, offering a 23% wage premium, compared to a 13% wage premium for Master's degrees and a 33% premium for PhDs. In science, engineering, and tech jobs, the AI skills premium is 36%. Analysis of over 10 million online job vacancies in the UK between 2018 to 2024.

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AI reports and resources

LinkedIn: AI engineering talent grew 130% since 2016; 7 per 1,000 members

LinkedIn Economic GraphFeb 1, 2025Institutional
Show excerpt

LinkedIn's AI skills resources hub tracking AI engineering talent growth (130% increase since 2016). 7 out of every 1,000 LinkedIn members globally are AI engineering talent.

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Complement or Substitute? How AI Increases the Demand for Human Skills

Oxford/OII: 5-10% wage premium for AI-complementary skills (12M vacancies)

Oxford Internet Institute (Mäkelä, Stephany)Dec 27, 2024Research
Show excerpt

AI-focused roles are twice as likely to require resilience, agility, and analytical thinking. Data scientists with complementary skills (resilience, ethics) earn a 5-10% salary premium. Complementary effects are 1.7x larger than substitution effects across 12 million US job vacancies 2018-2023.

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The Geography of AI Jobs — Indeed Hiring Lab

Indeed: AI roles pay 38% wage premium in top-10 tech metros

Indeed Hiring LabSep 1, 2024Institutional
Show excerpt

AI-related roles offer a 38% wage premium in top-10 tech metros vs. national average. Non-AI roles in same metros show only 12% premium.

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Artificial Intelligence and the Skill Premium

NBER model: AI scaling cuts skill premium from ~2.0x to 1.62x

NBER (Bloom, Prettner, Saadaoui, Veruete)May 1, 2024Research
Show excerpt

We show that AI reduces the skill premium as long as it is more substitutable for high-skill workers than low-skill workers are for high-skill workers. [...] This leads to a skill premium of about 2, i.e., wages of high-skill workers are twice the wages of low-skill workers. In the second row, G_t is half the value of P_t and the skill premium decreases to about 1.7. In the third row, the value of G_t is now the same as the value of P_t so that the skill premium shrinks further to 1.62.

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Microsoft FY24 Q3 Press Release

Microsoft: Cloud revenue $35.1B, up 23%; 65%+ of Fortune 500 use Azure OpenAI

Microsoft Investor RelationsApr 25, 2024Research
Show excerpt

Microsoft Cloud revenue was $35.1 billion, up 23%. More than 65% of the Fortune 500 now use Azure OpenAI Service, and $100M+ Azure deals increased over 80% YoY.

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The AI Talent Landscape: Skills, Demand, and Compensation

Lightcast 2024: ~20% premium for AI-skill postings (superseded by 2025 edition, 28%)

Lightcast (Burning Glass)Jan 15, 2024Institutional
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Experimental Evidence on the Productivity Effects of Generative Artificial Intelligence

Noy & Zhang: low-ability workers gain most from AI

Science (Noy, Zhang)Jul 14, 2023Research
Show excerpt

ChatGPT compressed productivity distribution — low-ability workers gained most (40% time reduction, 18% quality increase). May reduce skill premium over time.

AI Job Postings and Salary Trends
Indeed Hiring LabFeb 1, 2023News
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Artificial Intelligence and Jobs: Evidence from Online Vacancies

JLE: 11% wage premium for job postings requiring AI skills within same firm

Journal of Labor Economics (Acemoglu, Autor, Hazell, Restrepo)Jan 1, 2022Research
Show excerpt

AI-exposed establishments reduce hiring in non-AI positions. A wage premium of 11% exists for job postings requiring AI skills within the same firm.

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