AI’s Ripple Effect on Skills and Labour Markets: Evidence from Two Years with the SkillScale Project

Over the past two years, the SkillScale Project at the Oxford Internet Institute has explored how fast-changing technology—especially AI—is transforming the types of skills employers seek. Our research shows that companies increasingly value practical AI skills over traditional degrees, primarily because there aren’t enough workers trained in these areas. This strong demand has pushed up salaries for AI-related jobs and led employers to offer extra benefits—like remote work, generous parental leave, and a more supportive workplace culture—to attract the limited pool of AI talent. At the same time, we found that as AI takes over routine tasks and data analysis, employers are putting a higher premium on human-centered abilities such as teamwork, resilience, and critical thinking. These “people skills” remain essential even as AI tools become more common. Overall, our findings highlight the need for new training and re-skilling programs so workers can adapt to changing job requirements. By investing in these efforts, policymakers and employers can help create a fairer job market in the age of AI—one where everyone can learn the skills they need to succeed.