ACADEMIC ARTICLE SUMMARY
Automation and the Workforce: A Firm-Level View from the 2019 Annual Business Survey
Article Source: NBER Working Paper No. 30659, 2022
Publication Date:
Time to Read: 2 minute readWritten By:
Daron AcemogluTAP Scholar
Cathy Buffington
David N. Beede
Emin Dinlersoz
Eric E. Childress
Gary W. Anderson
John C. Haltiwanger
Lucia S. Foster
Nathan Goldschlag
Nikolas Zolas
Pascual Restrepo
Zachary Kroff
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ARTICLE SUMMARY
Summary:
A survey of thousands of firms helps economists understand the spread of advanced technologies such as robotics. Advanced technologies are often used for automation, and generally improves productivity.
POLICY RELEVANCE
Policy Relevance:
Advanced technologies may increase demand for high-skilled workers, but not for low-skilled workers.
KEY TAKEAWAYS
Key Takeaways:
- The 2019 Annual Business Survey collected data from more than 300,000 United States companies to discover how firms were using artificial intelligence (AI), dedicated equipment, specialized software, robots, and cloud computing.
- Between 2016 and 2018, adoption of advanced technologies varied widely across different sectors and is generally low, especially for robotics and artificial intelligence.
- Only 3.2 percent of firms used AI, and 2 percent used robotics.
- About half of U.S.-based firms did not use any advanced technologies, mainly because of high costs.
- Only 3.2 percent of firms used AI, and 2 percent used robotics.
- Large firms and new firms are most likely to use advanced technologies.
- Use of advanced technologies by large firms exposes many workers to advanced technologies.
- About 13 percent of workers have been exposed to AI, and about 16 percent to robotics.
- Use of advanced technologies by large firms exposes many workers to advanced technologies.
- About 55 percent of AI-using firms and 65 percent of robotics-using firms use advanced technology to support automation.
- Overall, about 30 percent of workers are at firms where advanced technology supports automation.
- In manufacturing, about 52 percent of workers are at such firms.
- Overall, about 30 percent of workers are at firms where advanced technology supports automation.
- Firms that adopt advanced technologies to support automation have about 11.4 percent higher labor productivity; this difference in labor productivity accounts for about a third of the difference in productivity between large firms and small firms.
- Firms report that advanced technologies increase demand for skilled workers, but effects on the firm’s overall employment levels were unclear.
- The labor share of these firms tended to be lower.
- When advanced technologies do not involve automation and do not displace human workers, they increase sales and employment.
- Automation technologies do not increase opportunities for low-skilled workers.
- The labor share of these firms tended to be lower.
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About Daron Acemoglu
In 2019, Professor Acemoglu received MIT’s highest faculty honor by being named Institute Professor. Professor Acemoglu is a leading thinker on the labor market implications of artificial intelligence, robotics, automation, and new technologies. His innovative work challenges the way people think about how these technologies intersect with the world of work.
