AI Drives Major Changes in US Labor Market: Wider Job Opportunities and Higher Salaries Emerge Outside Traditional Tech

Strategic Insights -

The US labor market is undergoing significant changes driven by artificial intelligence (AI), with a new report from labor market analytics firm Lightcast revealing a widening gap between declining tech roles and growing AI-enabled positions across other industries. While the tech industry is experiencing widespread layoffs, non-tech sectors are experiencing a rise in job opportunities and salaries tied to AI proficiency.

Key Takeaways:

  • The "Beyond the Buzz" report shows a significant salary premium of 28% on average, equating to nearly $18,000 more annually, for roles requiring AI skills outside traditional tech functions.
  • AI-powered tools are replacing roles in software engineering, IT support, and administrative services, with Microsoft alone announcing 15,000 job cuts, despite committing $80 billion to AI investments.
  • The share of AI jobs within IT and computer science has dropped from 61% in 2019 to 49% in 2024, indicating a shift in where AI skills are in demand.
  • Over half of all job postings requiring AI skills in 2024 were outside the tech industry, with marketing, education, HR, finance, manufacturing, and customer service emerging as leading sectors integrating AI capabilities.
  • Job postings mentioning generative AI skills outside IT and computer science rose 800% since 2022, driven by tools like ChatGPT, Microsoft Copilot, and DALL-E, changing workflows in sectors such as marketing, design, and education.
  • Workers with two or more AI-related skills see up to a 43% premium on advertised salaries, with sectors such as sales, customer support, and manufacturing reporting the largest pay increases for AI-proficient workers.
  • Soft skills such as communication, leadership, and problem-solving abilities are essential in AI roles, alongside machine learning and AI foundations.

Statistics:

  • 28% salary premium for AI-skilled roles, equivalent to nearly $18,000 more per year outside tech sector.
  • Up to 80,000 jobs impacted in the tech sector due to AI integration.
  • 61% decline in AI jobs within IT & computer science from 2019 to 2024.
  • Over 66,000 job postings in 2024 mentioned generative AI skills, a nearly fourfold increase from the prior year.
  • 19,500 postings of large language modeling jobs in 2024, the second most common AI skill.
  • More than 50% of all AI-skilled roles in 2024 were outside the tech industry.

Sources:

  • Lightcast's "Beyond the Buzz" report
  • Fortune: "AI is creating a new generation of 'AI-fluent' workers"
  • Thoughtlight: Christina Inge, founder
  • Fortune: interview with Cole Napper, Vice President of Research, Innovation, and Talent Insights at Lightcast
  • TOI Education