Federal Reserve Bank of Atlanta investigates employer demand for AI skills

In 2024, nearly 628,000 job postings demanded at least one AI skill, according to research from the Federal Reserve Bank of Atlanta’s Center for Workforce and Economic Opportunity. The research also revealed that the percentage of all job postings requiring at least one AI skill increased from approximately 0.5% in 2010 to 1.7% in 2024. These numbers, however, do not inform workforce development practitioners or workers selecting training programs about which levels of education produce the most in-demand workers entering the AI-dominated workforce, nor do they indicate which occupations at what level of educational attainment have increasing demand for these skills. To provide these insights, the Fed researchers conducted an examination of the growth in employer demand for AI skills, analyzing online job posting data from 2010 to 2024. 

The researchers conclude that the highest demand for AI skills within major occupational groups in the Standard Occupational Classification (SOC) system—regardless of educational level—was, logically, in computer and mathematical occupations; in 2023, 12.3% of all job postings in that area asked for AI skills, an increase from 1.6% in 2010. All other occupational groups fell far short of that percentage: only four occupational groups have percentages greater than 2% of online job postings requiring AI skills in 2024: architecture and engineering (3.2% in 2024, up from 1.1% in 2010), business and financial operations (2.4% in 2024, up from 1% in 2010), management (2.2% in 2024, up from 1% in 2010), and life, physical, and social science (2.1% in 2024, up from 1% in 2010). 

When the researchers compared the percentage of online job postings in 2024 requiring at least one AI skill by the minimum education requirement listed, they found that 5.3% required a PhD or professional degree, 5.0% required a master’s degree, and 4.7% required a bachelor’s degree. On the other hand, only 1.4% of postings required at least an associate's degree, while 0.5% required a high school diploma or GED.

The researchers broke down those percentages by occupation for each degree. They found that growth in AI skill demand for those with a high school diploma or associate's degree (HS/AA) is heavily concentrated in computer and mathematical occupations, with a 14% annualized growth rate. In 2024, 6.2% of online job postings requiring at least one AI skill also required this level of education. The authors suggest that the growth in AI skill demand for associate degree occupations is primarily driven by high growth and high demand for AI skills in computer and mathematical occupations. They also note, “While AI skill demand growth in the BA+ category is also heavily concentrated in the computer and mathematical occupations, the demand growth is more spread across occupation groups than for HS/AA occupations.” The other high growth, high demand BA+ occupations are production, business and financial operations, office and administrative support, sales, management, and legal.