Abstract
We study the role of human-capital on the early adoption and diffusion of Artificial Intelligence (AI) technologies. We do this using recently released EUROSTAT data on AI-adoption across European countries and industries in 2021. We find that pre-existing differences in human-capital are a key driver of differences in AI-adoption. Our estimates suggest that one-third-to half of AI-adoption is linked to differences in available human-capital across country-industry cells. This relationship holds even when we account for country and industry specific factors. Moreover, higher clustering of university educated workers in firms appears crucial for AI-adoption. This effect is particularly strong for the following AI technologies: (i) those assisting the automation of processes and (ii) those that enable physical movements of machinery. Within firms, human-capital fosters the use of AI in processes associated with production, management and logistics. Despite documenting the automative nature of the AI technologies adopted, we find no evidence for them leading to employment declines (at least by 2021).
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
