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Human after all: Occupations at the core of AI adoption

Author

Listed:
  • Fontanelli, Luca
  • Calvino, Flavio
  • Criscuolo, Chiara
  • Nesta, Lionel
  • Verdolini, Elena

Abstract

This paper investigates how firms’ occupational structure shapes the adoption of artificial intelligence (AI) using matched administrative data on French firms and relying on an instrumental variable Probit model. We identify ICT engineers as the only occupational group with a robust and statistically significant effect on AI adoption. This finding holds for ICT and non-ICT Services sectors, and regardless of whether AI is developed in-house or acquired externally. Our estimates suggest that closing the occupational gap between adopters and non-adopters would require approximately 215,000 additional ICT engineers, and 45,000 for the firms most exposed to AI. The results highlight the critical importance of investing in advanced digital skills to support the broader diffusion of AI technologies.

Suggested Citation

  • Fontanelli, Luca & Calvino, Flavio & Criscuolo, Chiara & Nesta, Lionel & Verdolini, Elena, 2025. "Human after all: Occupations at the core of AI adoption," Labour Economics, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:labeco:v:95:y:2025:i:c:s0927537125000788
    DOI: 10.1016/j.labeco.2025.102754
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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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