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The Potential Impact of AI Innovations on U.S. Occupations

Septiandri, Constantinides, Quercia

2024PNAS Nexus14 citations
Exposure / measurementInterdisciplinaryCausal
AI (General)HealthcareSoftware / codingAugmentation vs. substitutionGeneral automation
Abstract

Abstract An occupation is comprised of interconnected tasks, and it is these tasks, not occupations themselves, that are affected by Artificial Intelligence (AI). To evaluate how tasks may be impacted, previous approaches utilized manual annotations or coarse-grained matching. Leveraging recent advancements in machine learning, we replace coarse-grained matching with more precise deep learning approaches. Introducing the AI Impact measure, we employ Deep Learning Natural Language Processing to automatically identify AI patents that may impact various occupational tasks at scale. Our methodology relies on a comprehensive dataset of 17,879 task descriptions and quantifies AI’s potential impact through analysis of 24,758 AI patents filed with the United States Patent and Trademark Office between 2015 and 2022. Our results reveal that some occupations will potentially be impacted, and that impact is intricately linked to specific skills. These include not only routine tasks (codified as a series of steps), as previously thought but also nonroutine ones (e.g. diagnosing health conditions, programming computers, and tracking flight routes). However, AI’s impact on labor is limited by the fact that some of the occupations affected are augmented rather than replaced (e.g. neurologists, software engineers, air traffic controllers), and the sectors affected are experiencing labor shortages (e.g. IT, Healthcare, Transport).

Summary

Septiandri, Constantinides, and Quercia develop the AI Impact (AII) measure using deep learning NLP to match 17,879 O*NET task descriptions with 24,758 USPTO AI patents (2015-2022), validated through historical analysis of robot and software exposure effects on wages and employment (1980-2010), finding that AI impacts both routine and non-routine tasks in healthcare, IT, and manufacturing occupations

Main Finding

Healthcare, information technology, and manufacturing occupations face highest AI exposure (cardiovascular technologists 64% of tasks impacted, sound engineers 57%), affecting both routine and non-routine tasks; robot exposure associated with 9% employment decline and 4% wage decline (1980-2010), software with 10% employment decline and 7% wage decline; most-impacted sectors experience labor shortages (r=0.58 correlation between AII and vacancy rates); some occupations augmented rather than replaced

Primary Datasets

O*NET 26.3 (May 2022, 759 occupations, 17,879 tasks); USPTO patents via Google Patents Public Data (24,758 AI patents, 2015-2022, filtered using WIPO PATENTSCOPE AI Index)

Secondary Datasets

US Census (1960-2000) and American Community Survey (2000-2018) via IPUMS for validation; Quarterly Census of Employment and Wages (QCEW) 2022 for regional analysis and vacancy rates; Census Alphabetical Index of Occupations and Industries (CAI) for augmentation vs. automation analysis; Google Patents Public Data for international patents (China, Japan, Korea)

Key Methods
Deep learning NLP (Sentence-T5) to compute semantic similarity between O*NET task descriptions and USPTO AI patent abstracts; cosine similarity matching; validation via historical case studies (robots and software exposure vs. employment/wage changes 1980-2010 using census data with DiD-style regression); thematic analysis of task-patent pairs
Sample Period
2015-2022 (AI patents); 1980-2010 (validation analysis using census data)
Geographic Coverage
US
Sample Size
759 occupations with 17,879 unique tasks from O*NET; 24,758 AI patents from USPTO (2015-2022); validation analysis uses census microdata (1960-2018) covering millions of workers aggregated to occupation-industry-year cells
Level of Analysis
Task, Occupation, Industry, Region
Occupation Classification
O*NET (759 occupations); occ1990 (IPUMS) for historical analysis; SOC codes for occupation grouping
Industry Classification
ind1990 (IPUMS industry classification); NAICS sectors for industry-level aggregation
Replication Package
Yes
Notes
arXiv:2312.04714v3 [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles [Claude classification]: Authors use deep learning (Sentence-T5) as analytical tool to construct the exposure measure, not as the technology being studied. Paper studies AI in general based on USPTO patents classified by WIPO PATENTSCOPE AI Index. Validation uses historical case studies (robots/software) with DiD-style analysis controlling for industry effects, education, wage polarization, and offshorability. Thematic analysis identifies healthcare, IT, and manufacturing as key impacted sectors. Paper distinguishes automation vs. augmentation following Autor et al. 2022 methodology using Census micro-titles