Artificial Intelligence and High-Skilled Work: Evidence from Analysts
Finance & Accounting
|Speaker:||Jillian Grennan, Duke University|
|Date: ||Wednesday 21 April 2021|
|Time: ||16:00 - 17:00|
|Location: ||Online via Zoom (link available from J.Lashkor@exeter.ac.uk)|
Policymakers fear artificial intelligence (AI) will disrupt labor markets, especially for high-skilled workers. We investigate this concern using novel, task-specific data for security analysts. Exploiting variation in the abundance of data across stocks, we show analysts with portfolios that are more exposed to big data are more likely to reallocate efforts to soft skills, shift coverage away from those stocks, and even leave the profession. Analyst departures disproportionately occur among highly accurate analysts, leaving for non-research jobs. Reliance on complementary tasks that use analysts' soft information advantage help to improve consensus forecasts. However, increased competition from external AI technologies reduce the novelty in analysts' research which reduces compensation.