The AI Workforce and Firm Maturity

Sasin Professor Pattanaporn Chatjuthamard, Ph.D., examines how firm age affects the adoption of artificial intelligence (AI) within the workforce. Drawing on a novel dataset developed by Babina et al. (2024), which combines resume and job posting data from U.S. firms, the study finds that older firms often face challenges in integrating AI talent, possibly due to entrenched practices, outdated systems, and resistance to change. Specifically, a one-standard-deviation increase in firm age is associated with a 5.2% reduction in the share of AI workers. However, investments in research and development, as well as infrastructure, can help mitigate these challenges by supporting modernization and attracting skilled AI professionals. The analysis also highlights the role of board composition in AI adoption, particularly the presence of female and minority directors. In older firms, risk-averse decision-making and slower consensus-building among diverse boards may hinder the integration of AI talent. Firms that successfully integrate AI talent show significant improvements in market valuation and operational efficiency. The study provides practical insights for managers and policymakers seeking to guide mature organizations through technological transformation. The findings focus on internal AI capability development and may not fully capture firms’ reliance on external AI solutions. CLICK HERE TO READ THE FULL CHAPTER