UK employers are demonstrating a strong willingness to pay a premium for workers with artificial intelligence (AI) skills, with a significant 14% wage increase on average for roles requiring these capabilities - according to recent research by PwC. This trend is driven by a notable surge in demand for tech skills and the productivity gains observed in sectors most exposed to AI.
PwC’s 2024 Global AI Jobs Barometer highlights a rapid increase in job vacancies demanding AI-related skills - such as machine learning - outpacing the growth seen across all other job categories since 2016. This demand has led employers to offer substantial wage premiums to attract talent. Notably, the wage premium varies by profession, with database designers and administrators commanding a remarkable 58% premium, while lawyers see a 27% increase.
Between 2012 and 2023, job postings for AI roles in the UK grew 3.6 times faster than for other positions, rising from three per thousand job ads in 2012 to nine per thousand in 2023. Despite this growth, the UK's rate remains relatively low compared to other countries. For instance, in Singapore, the demand for AI-related jobs has expanded 13.5 times faster than the overall job market during the same period.
The sectors most exposed to AI - where technology can be readily employed for various tasks - have experienced significant productivity growth. Globally, these sectors have seen productivity increase by 4.8 times more than those less able to adopt AI. In the UK, sectors such as financial services, information technology and professional services have witnessed productivity gains marginally above the global average.
PwC's comprehensive analysis, covering over half a billion job advertisements from 15 countries representing more than 30% of global GDP, provides empirical evidence of AI's transformative impact on job markets. The research underscores that AI-exposed occupations, such as financial analysts, customer service agents and software coders, are evolving rapidly. Skills required by employers in these roles are changing at a 25% higher rate than in less AI-exposed occupations, necessitating continuous upskilling for workers to remain relevant.
The report suggests that AI could be instrumental in overcoming stagnation in productivity growth, leading to economic development, higher wages and improved living standards. For each AI specialist job posted in 2012, there are now seven such postings. The demand for AI skills has grown 3.5 times faster than for all other jobs since 2016. In markets with available wage data, such as the US, UK, Canada, Australia, and Singapore, jobs requiring AI skills command a significant wage premium, reaching up to 25% on average in the US.
The shift towards AI capabilities is not just about higher wages; it reflects a broader economic opportunity. As AI becomes more integrated into various industries, the value of these skills is increasingly recognised. For example, in the US, wage premiums for AI skills range from 18% for accountants to 49% for lawyers, demonstrating the cross-industry demand for AI proficiency.
The findings from PwC's report indicate that to capitalize on these opportunities, workers must continually adapt and acquire new skills. As AI reshapes job markets, the ability to demonstrate proficiency in AI-related competencies could be crucial for career advancement and economic success.
