Demand for artificial intelligence skills for new hires has exploded over the past five years and continues to be a priority for recruiters across nearly every industry, according to data from Stanford University's annual AI Index report.
In 2023, 1.6% of all U.S.-based jobs will require AI skills, down slightly from 2% in 2022. The decline comes after years of growing interest in artificial intelligence and is likely due to hiring slowdowns, freezes, or layoffs at major tech companies such as Amazon, Deloitte, and Capital One in 2023, the report said.
That number is still significantly higher than it was just a few years ago, and by 2023, thousands of jobs across all industries will require AI skills.
What are AI-related jobs, and where exactly will they take place?
Generative AI skills — the ability to build algorithms that generate text, images, and other data in response to instructions — are the most in demand, with roughly 60% of AI jobs calling for these skills. Second in demand is large-scale language modeling — building technology that can generate and translate text — with 18% of AI jobs calling for these skills.
These skills were followed by ChatGPT knowledge, prompt engineering, AI training, and two other specific machine learning skills.
There is a wide range of industries requiring these skills. Information industry ranked first with 4.63% of employment, followed by professional, scientific and technical services with 3.33%. Finance and insurance followed with 2.94% and manufacturing in fourth place with 2.48%.
In administration, education, management and public works occupations, 1-2% of open positions called for AI skills, while in agriculture, mining, wholesale trade, real estate, transportation, warehousing, retail and waste management occupations, 0.4-0.85% of open positions called for AI skills.
While AI jobs are concentrated in some parts of the country, the report found that there will be thousands of AI jobs available in nearly every U.S. state by 2023.
California, home to Silicon Valley, had 70,630 AI jobs posted in the country for 2023, or 15.3% of all jobs. Texas followed with 36,413, or 7.9%. Virginia came in third with 24,417 AI jobs, or 5.3% of all jobs.
Based on population, Washington state had the highest percentage of people working in AI-related jobs, followed by California and New York.
Only three states – Montana, Wyoming and West Virginia – had fewer than 1,000 jobs requiring AI, but due to their population size, AI-related jobs accounted for 0.75%, 0.95% and 0.46% of their statewide job openings last year, respectively.
Although the number of job openings has decreased from 2022 to 2023, the adoption of AI technologies across business operations has not decreased. In 2017, 20% of companies reported that they had started using AI for at least one function of their business. In 2022, 50% of companies said they had started using AI, and in 2023, that number will reach 55%.
According to the report, companies that incorporate AI tools into their business have seen their employees become more productive. Research has shown that AI tools enable employees to complete tasks faster and improve the quality of their work, according to the report. Research also suggests that AI may also have the ability to upskill employees.
The report acknowledges that despite all the technological advancements the AI industry has seen over the past five years, there are still many unknowns. The US is still waiting for federal AI legislation, while individual states are enacting their own regulations and laws.
The Stanford report predicts two futures for the technology's trajectory: one in which the technology continues to develop and improve productivity, but can be used for “good and bad purposes,” and another in which, without proper research and development, the researchers say, adoption of AI technology could be limited.
“Governments step in to encourage the positive aspects, such as funding university research and development and encouraging private investment,” the report said of government agencies. “Governments also seek to manage potential negative aspects, such as the impact on jobs, privacy concerns, misinformation and intellectual property rights.”
