1 Introduction 1

2 Data 7

3 Differential impact in more exposed occupations 9

 3.1 Empirical strategy 10

 3.2 Estimates of the effect of AI on labor demand 11

 3.3 Robustness 12

 3.4 Event study estimates in AI capability space 14

 3.5 Heterogeneity in impact of AI across economies 14

4 Demand for emerging AI skills 15

 4.1 Identifying emerging AI skills 15

 4.2 Demand for AI skills is increasing 16

 4.3 Evidence at the firm level: empirical strategy 17

 4.4 Larger firms are more likely to adopt AI 18

 4.5 AI adopting firms have higher growth 18

5 Conclusion 20