A recent PwC report reveals that industries heavily reliant on artificial intelligence (AI) are experiencing remarkable productivity growth and wage increases. Sectors with high AI exposure in the global economy are outpacing others, with the UK seeing a surge in AI-related job postings and wage premiums. Despite concerns, the report emphasises AI’s potential to spawn new industries and drive economic growth.
A recent report by PwC indicates that sectors of the global economy most exposed to artificial intelligence (AI) are experiencing a significant increase in productivity and wages. The study found that productivity growth in these sectors is nearly five times faster than in less exposed ones. In the UK, job postings requiring AI skills are growing 3.6 times faster than the overall job market, with employers willing to pay a 14% wage premium for such skills. Legal and information technology sectors are witnessing the highest premiums.
The report also notes that AI has impacted the job market for over a decade, with job postings for AI specialists increasing sevenfold since 2012. Companies are turning to AI to address labor shortages, suggesting potential economic benefits for nations with shrinking working-age populations.
Despite some concerns about job losses due to generative AI, the report suggests that AI’s adoption has not led to significant job cuts. PwC’s chief economist, Barret Kupelian, highlighted AI’s potential to create new industries and transform the job market, emphasizing that further technological diffusion could lead to substantial economic benefits.
Additionally, Mary Kay Henry, outgoing president of the Service Employees International Union (SEIU), highlighted the “Fight for $15 and a Union” campaign, which successfully raised wages for many low-paid workers. However, the campaign did not significantly increase SEIU membership, which declined during her tenure.
California continues to have the highest unemployment rate in the U.S. at 5.3%, with employment growth stagnating in various sectors. North Dakota and South Dakota have the lowest jobless rates at 2.0%.
