Researchers at Anglia Ruskin University (ARU) conducted an innovative experiment by submitting CVs for job vacancies aimed at British 21-year-olds with a 2:1 degree, highlighting an intriguing aspect: the inclusion of AI capital. Some applicants had taken an ‘AI in business’ module, which was prominently mentioned in their cover letters. This study adopted a matched pair method where a male applicant with AI capital and another without would apply for the same job. This resulted in 1,360 applications from male candidates to 680 UK companies and 1,316 from female candidates to 658 firms.

The data gathered showed a clear advantage for applicants equipped with AI capital. Male candidates with AI qualifications received interview invites in 54% of cases, while their counterparts without AI capital had a 28% invitation rate. Female applicants saw similar trends, with a 50% interview invitation rate for those with AI skills compared to 32% for those lacking them. The study revealed that this AI capital advantage was significantly more pronounced in larger firms, where applicants were 36 percentage points more likely to be invited for interviews than in smaller and medium-sized firms.

Moreover, the benefits of AI capital extended beyond just the likelihood of getting an interview. Male applicants with AI qualifications were considered for positions offering wages approximately 12% higher than those provided for males without such skills. Female applicants with AI capabilities were presented with job opportunities that paid, on average, 13% more than those available to their non-AI-skilled peers.

Professor Nick Drydakis, the study’s lead author and a Professor of Economics at ARU, shed light on AI’s transformative impact on the UK job market. He emphasized the necessity for firms to enhance their workforce’s AI competencies in response to these changes. According to him, the study conclusively shows that employers greatly value AI knowledge and skills among job applicants, with those possessing AI capital significantly more likely to secure interview opportunities and access higher-paying jobs.

Professor Drydakis elaborated on the types of skills encompassed by AI capital, which include data analysis, data-driven decision-making, creativity, innovation, and effective communication. These skills are pivotal in enhancing business operations, improving efficiency, and boosting a firm’s productivity. He noted that larger firms, in particular, tend to place a higher value on AI capital, possibly due to their larger-scale AI-driven technological transformations and greater capacity for innovation.

This research highlights the increasing importance of AI skills in securing employment. Acquiring such skills can be a strategic move for individuals aiming for higher wages and better job opportunities in an increasingly competitive job market.

More information: Nick Drydakis et al, Artificial intelligence capital and employment prospects, Oxford Economic Papers. DOI: 10.1093/oep/gpae005

Journal information: Oxford Economic Papers Provided by Anglia Ruskin University