Amenability To Ai and Employee Outcomes: Evidence From The Pandemic

This study provides evidence of the impact of firm exposure to Artificial Intelligence (AI) on shifts in hiring and wages, and non-pecuniary benefits provided by firms during the COVID-19 pandemic. Using data from a large-scale survey of nearly 600,000 workers across 2,971 firms during the pandemic, we find that greater AI firm exposure related to improved hiring outcomes, less adverse impact of wages, and increased non-pecuniary benefits. Further, using data on nearly 119,060 employee reviews, representing 73 3-digit occupations and 1624 unique firms, we find that within firms, employees in occupations with greater AI exposure strengthened their relationship with the employing firm post the pandemic, as reflected in perceptions of job security, organizational culture, and satisfaction with work and the organization. Our results suggest that the most substantive effect of AI in the coming years could potentially be in driving redesign of work and business models to improve firm and employee outcomes and have important implications for work and business models across diverse industries.