PwC: AI-exposed sectors see productivity surge and up to 25% wage premium

KUALA LUMPUR, 21 May 2024 – Jobs that require AI specialist skills carry a significant wage premium (up to 25% on average in the US), according to PwC’s inaugural 2024 Global AI Jobs Barometer, published today. 

The report, which analysed over half a billion job ads from 15 countries, suggests that AI could allow many nations to break out of persistent low productivity growth, generating economic development, higher wages, and enhanced living standards. 

The report finds that for every job posting requiring AI specialist skills (like machine learning) in 2012, there are now seven job postings.¹ PwC research also finds that growth in jobs demanding AI skills has outpaced all jobs since 2016, with postings for jobs requiring AI skills growing 3.5x faster than for all jobs.

The findings also highlight economic opportunity for labour forces: jobs that require AI skills carry up to a 25% average wage premium in some markets. 

Skills sought by employers are changing much faster in occupations more exposed to AI, with old skills disappearing - and new skills appearing - in job ads at a 25% higher rate than in occupations less exposed to AI. To stay relevant in these occupations, workers will need to demonstrate or acquire new skills.

As questions abound around the technology’s impact on everything from job security to long-term business viability, the findings highlight positive news, even for workers in sectors most exposed to AI. The findings reflect a good news story for workers and the global economy in which AI-enabled workers are more productive and more valuable, opening the door to rising prosperity for workers and nations. Like past technological revolutions from electricity to computers, AI is changing what it takes for workers to succeed - and those who adapt may enjoy vast new opportunities. 

Sundara Raj, Chief Digital Officer, PwC Malaysia, says: 

‘The report highlights the transformative potential of AI, reinforcing why businesses need to proactively embrace it. Businesses can no longer afford to view AI merely as a tool for efficiency gains; it represents a fundamental shift in how we operate and compete in the global marketplace. To facilitate and accelerate AI adoption, businesses must lay the groundwork by gradually operationalising AI at scale. This includes recognising and seizing new ROI opportunities while simultaneously implementing responsible AI governance frameworks. AI adoption isn’t just about future-proofing businesses, but also to position our nation as a frontrunner in harnessing AI for economic progress.’

AI penetration is accelerating, particularly in knowledge work sectors 

The study finds that knowledge work sectors are seeing the most rapid growth in the share of roles requiring AI skills. This includes financial services (2.8x higher share of jobs requiring AI skills vs other sectors), professional services (3x higher), and information & communication (5x higher).² These sectors are experiencing nearly 5x higher labour productivity growth than sectors less exposed to AI.³

No going back to yesterday’s jobs markets: The skills building imperative

Companies, workers, and policymakers share responsibility for helping workers build the skills to succeed in a fast changing jobs market. Skills demanded by employers in occupations more exposed to AI are changing at a 25% higher rate than in less exposed occupations. 69% of CEOs expect AI will require new skills from their workforce, rising to 87% of CEOs who have already deployed AI, according to PwC’s 27th Annual Global CEO Survey 2024. It is crucial for organisations to adopt a skills-first approach that encompasses continuous skills development, not just in recruitment but also for existing employees. By treating workers as individuals with versatile skill sets that can be applied across the organisation, firms can better prepare their workforce for the challenges and opportunities brought about by AI.  

Carol Stubbings, Global Markets and Tax & Legal Services (TLS) Leader, PwC UK, says:

‘AI is transforming the labour market globally and presents good news for a global economy hindered by deep economic challenges and concerns around long-term business viability. For many economies experiencing labour shortages and low productivity growth, the findings highlight optimism around AI with the technology representing an opportunity for economic development, job-creation, and the creation of new industries entirely. However, the findings show that workers will need to build new skills and organisations will need to invest in their AI strategies and people if they are to turbocharge their development and ensure they are fit for the AI age.’

ENDS