Artificial intelligence, productivity, and the labor share

Abstract

What is the impact of artificial intelligence adoption on firm productivity and labor automation? Using data from Spanish manufacturing firms during 2018-2024, I find that adoption of deep learning increases labor-augmenting productivity by 15.5%-17.2%, depending on sector, with no effects on Hicks-neutral productivity. This is roughly 3-5 times that of robots, which increase labor productivity by 2.8%-6.6%. Preliminary results suggest that AI is skill-biased, unlike robotics.