Abstract

We study the relationship of establishments’ efforts to develop, implement or use artificial intelligence technologies (AI activity henceforth) and their labour demand. To identify AI activity, we extract AI skill requirements revealed in German job postings. This data also allows a direct link to administrative establishment data. We estimate how AI activity relates to a general change in skills demand and employment over time. First, establishments with AI activity have a higher skills turnover by simultaneously adding more skills and dropping more skills from their job ads than other establishments.However, since on average they add more skills then they drop, they increase their skills demand more than others. Second, we find that AI activity is associated with higher employment growth which is particularly pronounced in highly complex jobs. Overall, we find no evidence for sizeable displacement of human tasks.