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Generative AI Adoption and Higher Order Skills

Published: March 12, 2025 | arXiv ID: 2503.09212v2

By: Piyush Gulati , Arianna Marchetti , Phanish Puranam and more

Potential Business Impact:

AI changes jobs, needing new skills, less talking.

Business Areas:
Artificial Intelligence Artificial Intelligence, Data and Analytics, Science and Engineering, Software

We study how Generative AI (GenAI) adoption is reshaping work. While prior studies show that GenAI enhances role-level productivity and task composition, its influence on skills - the fundamental enablers of task execution, and the ultimate basis for employability - is less understood. Using job postings from 596 US public firms that recruited explicitly for GenAI skills (2022-2024), we analyze how GenAI adoption shifts the demand for workers' domain-specific as well as higher-order (domain-agnostic) skills. Our findings reveal that roles with higher demand for cognitive skills are also more likely to explicitly advertise GenAI tool requirements such as ChatGPT, Copilot, etc. Further, a difference-in-differences analysis shows that the demand for social skills within GenAI adopting roles decreases by 4.5 percent post-ChatGPT launch. As cognitive and social skills are both meta-skills - i.e., they support the acquisition of future task-specific skills - our results suggest that the adoption of GenAI may be altering the trajectories of feasible upskilling.

Country of Origin
🇫🇷 France

Page Count
18 pages

Category
Economics:
General Economics