PwC sees a two-track job market in AI era

An analysis of over a billion job ads from six continents links greater AI exposure with stronger company performance. Productivity growth is 40% higher at companies most exposed to AI than at the least exposed, and since 2022 the most exposed companies have tripled their lead in workforce productivity growth. The top fifth of most-exposed companies achieved 163% productivity growth on average.

The findings also connect AI with faster wage and headcount growth rather than simple cost-cutting. Companies making the biggest productivity gains appear to be using AI to amplify human work, create new value and enter new markets, while wages at the most AI-exposed companies are rising faster.

AI is splitting the labour market between roles it professionalises and roles it democratises. Professionalised jobs are growing twice as fast as democratised ones, with 42% higher wage growth, while skills required in the most AI-exposed jobs are changing more than twice as fast as in the least exposed roles. New tasks in AI-exposed jobs are 2.5 times more likely to rely on empathy, judgement and creativity.

Entry-level work is shifting as junior roles demand more senior capabilities. AI-exposed junior roles are 7x more likely to require skills such as leadership and strategic thinking, and seniorised entry-level roles have shown 35% growth since 2019. Businesses are urged to redesign training, mentorship and onboarding around advanced human skills alongside AI skills.