Generative Al roles exhibit a greater gender imbalance and widening wage gap compared to the broader technology sector, according to a new labor market analysis by SkyHive, a skills intelligence provider specializing in transitioning organizations from jobs to skills.
The analysis summarizes SkyHive's data and key findings on the impact of Generative Al on the U.S. job market and economy, highlighting the urgent need for reskilling and upskilling initiatives to mitigate inequality in the workforce.
SkyHive's labor market intelligence is widely adopted by large companies, governments, and educational institutions amidst the global shift from jobs to skills. SkyHive's knowledge graph constitutes an extensive repository of data encompassing jobs, skills, compensation, and the global labor landscape. This patented technology is the first and only technology to successfully harmonize skills and jobs data across disparate systems and the global labor market.
Included in this report:
- The Impact of Generative AI on Inequality
- The Surge in Demand for Generative AI Skills
- Job Market Dynamics
- Industry Leaders and Sectoral Shifts
- Geographic Trends in Generative AI Employment
- The Implications of Generative AI Augmenting, Not Replacing Labor
The Impact of Generative AI on Inequality
While Generative AI may not directly lead to job displacement, it has significant implications for inequality, creating a divide between those who can and cannot access these new opportunities.
Generative AI skills command a median wage premium of 22 percent compared to other roles in the IT sector, according to SkyHive’s analysis. When we look at average wages, the premium jumps to 60 percent.
This gap signifies the potential of Generative AI to exacerbate existing wage inequalities, underlining the need for reskilling and upskilling initiatives at regional and national levels to mitigate these inequality effects and ensure a more inclusive technology-driven future.
Generative AI roles currently exhibit a higher concentration of male employees compared to the broader IT sector. This gender imbalance, coupled with the wage premium associated with these roles, could potentially widen the existing wage gap between genders, highlighting a critical area for intervention to promote gender equity in the rapidly evolving AI landscape.
The graph below shows the median salary of IT roles as compared to top Generative AI roles.
The graph below shows the percentage of women in IT roles versus Generative AI roles.
Surge in Demand for Generative AI Skills
In 2023, the labor market witnessed a remarkable 125 percent surge in job postings requiring Generative AI skills. The growth, however, is not uniform across all AI domains. Specifically, job postings for roles demanding expertise in GPT and Large Language Models skyrocketed by 8,000 percent and 759 percent, respectively. In contrast, demand for skills in Natural Language Understanding and Conversational AI saw a significant decrease, dropping by 52 percent and 26 percent.
This pattern highlights a dynamic shift in the AI skill sets that employers are prioritizing. Employers engaged in workforce planning must remain informed of these continuous fluctuations in skill demand across AI jobs. For educators and governments, understanding the forecast of these fluctuations will ensure that appropriate social and economic policy and related investments are made in the right areas.
This graph represents new online job postings that call for Generative AI skills, by month and year. The bright green line is a three-month rolling average of the monthly data.
Job Market Dynamics
The demand for Generative AI skills is predominantly concentrated in roles that spearhead innovation and the productization of this technology. This trend suggests that we are currently at an early stage in the technology adoption curve, indicating that the impact of Generative AI on the labor market is likely to expand considerably in the coming years.
Employers must understand the level in the AI technology stack where they want to develop required capabilities. Is it at the ground level, developing their own data sets, models, and applications? Or is it at the application layer and having the capability to rapidly deploy AI tools into existing software?
The graph below depicts the total demand in the past two years for the top 10 Generative AI roles.
Industry Leaders and Sectoral Shifts
Major companies like META, Google, Amazon, and Microsoft are leading the adoption of Generative AI, alongside firms like Deloitte and PwC. A noteworthy development, contrasting with the first wave of AI adoption, is the rapid embrace of Generative AI within the healthcare industry, signaling a broader and more diverse sectoral application of this technology.
The graph below depicts the total demand in the past two years for Generative AI by the top 10 companies hiring for these roles.
As demonstrated below, the absence of major consumer industries, such as retail and hospitality, represents a “market maker” opportunity within several key industries that will likely be part of future waves of AI adoption.
Geographic Trends in Generative AI Employment
Vermont, Wyoming, and Rhode Island are hotspots for Generative AI job opportunities, alongside the expected high concentration in Washington D.C., a hub for federal agencies and technology innovation. This geographic distribution indicates a broader reach of technology, transcending traditional tech-centric regions. It also in some cases may reflect people working remotely for a company headquartered elsewhere.
The Implications of Generative AI Augmenting, Not Replacing Labor
Generative AI predominantly complements rather than replaces human labor. Recognizing this distinction is vital for companies seeking to leverage this technology, as it requires a holistic understanding of the varied skill sets necessary for employees to seamlessly integrate Generative AI into their workflows.
While technical proficiency in areas such as Python, Machine Learning, and Cloud Computing is essential, human-centric skills like Collaboration, Communication, and Management are equally paramount. Furthermore, business-oriented skills like Business Strategy, Customer Experience Management, and Software Product Management are pivotal for maximizing the potential of Generative AI technologies.
SkyHive's data reveals the significance of these skills by showcasing the number of job postings in 2022 and 2023 that specifically require expertise in Generative AI alongside these essential technical, human-centric, and business-oriented skills.
Contact SkyHive to talk about how large organizations are using real-time intelligence on the labor market to undergo skills transformations.
Compiled by Bledi Taska, VP, Head of Analytics, at SkyHive
SkyHive is a Certified B Corporation that uses ethical artificial intelligence to drive global reskilling initiatives and create a more inclusive labor economy. Our products are designed to rapidly reskill people and help organizations and communities prepare for the future of work.
SkyHive was named one of the “Next Big Technologies Working for Social Good in 2023” by Fast Company, and a World Economic Forum Global Innovator.
Leading enterprises and innovative government organizations use SkyHive’s cloud-based applications, Human Capital Operating System™, and SkyHive’s Quantum Labor Analysis® to power the future of work at its most granular level: skills. In addition, SkyHive has been recognized by the World Economic Forum, GPAI, RAII, and others for leading efforts in ethical AI and its positive impact on labor economies worldwide.