AI is advancing fast—and its impact on the labor market is increasing.
If we can understand how AI is already changing the world of work, we’re better prepared to engage with it moving forward. Data on job postings and skills cut through the noise and can show us the truth about AI—because adding a new AI skill to job descriptions is often a sign that a company has moved from experimenting with a new technology to making a real strategic commitment to it.
The annual AI Index Report from the Institute for Human-centered Artificial Intelligence (HAI), part of the Digital Economy Lab at Stanford University, tracks, aggregates, and visualizes data related to artificial intelligence. Its mission is to provide unbiased, rigorously vetted, broadly sourced data so that for policymakers, researchers, executives, journalists, and the general public can develop a more thorough and nuanced understanding of the complex field of AI. The report aims to be the world’s most authoritative source for data and insights about AI—and where it intersects with the labor market, Stanford has turned to Lightcast.
Generative AI's Big Year
When OpenAI released ChatGPT in December 2022, it created a new wave of development and innovation around generative AI, and chat interfaces specifically. In 2023, Lightcast saw huge increases in the number of U.S. job postings citing generative AI skills: 15,410 job postings specifically cited generative AI as a desired skill, large language modeling was mentioned in 4,669 postings, and ChatGPT appeared in 2,841 job listings. No other field of AI saw similar growth.
Starting With Skills
Job postings make possible an analysis of specific skills, showing us that the most sought-after AI skills in the U.S. labor market since 2010 have been led by machine learning at 0.7%, with artificial intelligence at 0.5%, and natural language processing at 0.2%. Despite a recent dip, machine learning continues to be the most in-demand skill. Since last year, every AI-related skill cluster tracked by Lightcast had a decrease in market share, with the exception of generative AI, which grew by more than a factor of 10.
Global Growth
Lightcast defines an AI job posting as any job posting that requires at least one skill in AI, such as machine learning or natural language processing. And while all countries studied have seen large growth in AI job postings overall over the past several years, many dipped down in 2023 compared to 2022.
It's likely that this decrease is driven by many top AI employers (such as Amazon, Deloitte, Capital One, Randstad, and Elevance Health) scaling back their overall posting counts. Additionally, many companies shifted the occupational mix of their postings. For example, Amazon, in 2023, posted a higher share of operational roles like sales delivery driver, packager, and postal service/mail room worker than in 2022. At the same time, there was a lower share of demand for tech roles like software developers and data scientists.
In Good Company
Lightcast is one of several Analytics and Research Partners contributing to Stanford's annual AI Index Report. Others include Accenture, GitHub, LinkedIn, GitHub, McKinsey & Company, and the International Federation of Robotics.
The Stanford AI Index shows us a picture of where AI is now, so we can see where it will go in the future.
The revolutionary growth of AI means new skills being taught, sourced, and demanded by educators, communities, and businesses. As these trends reshape industries and influence policy, the AI Index Report provides insight to guide strategies and inspire responsible AI development.
At Lightcast, we're proud to contribute, because labor market data is a fundamental piece of that puzzle, instrumental in understanding the evolving demand for AI-related skills.
The 2024 Stanford AI Index Report is available now (and you can find our work in Chapter 4).
