Firm Investments in Artificial Intelligence Technologies and Changes in Workforce Composition – NBER – preliminary draft 9/22/2022. We study the shifts in US firms’ workforce composition and organization associated with the use of AI technologies. To do so, we leverage a unique combination of worker résumé and job postings datasets to measure firm-level AI investments and workforce composition variables, such as educational attainment, specialization, and hierarchy. We document that firms with higher initial shares of highly educated workers and STEM workers invest more in AI. As firms invest in AI, they tend to transition to more educated workforces, with higher shares of workers with undergraduate and graduate degrees, and more specialization in STEM fields and IT skills. Furthermore, AI investments are associated with a flattening of the firms’ hierarchical structure, with significant increases in the share of workers at the junior level and decreases in shares of workers in middle-management and senior roles. Overall, our results highlight that adoption of AI technologies is associated with significant reorganization of firms’ workforces.” Download