Event Details

Accounting and Finance Research Seminar presented by Jillian Grennan, Duke University. Paper title: "Artificial Intelligence and High-Skilled Work: Evidence from Analysts" (with Roni Michaely)

https://www.fuqua.duke.edu/faculty/jillian-grennan

Abstract

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.

JEL classification: G17, G24, J23, J24, J31, O33 Keywords: artificial intelligence, big data, technology, automation, sell-side analysts, job displacement, labor, corporate, personnel economics, social skills, skill-augmentation, non-cognitive skills, tasks, skill premium, skill-biased technological change, comp