To What Extent Does Industry-Level Exposure to Generative AI Influence Wage Growth Trend in the U.S. Service-Sector Industries During the Early Adoption Period (2023–2025)?

Abstract

This paper investigates the impact of GenAI on the US labour market, especially in the service sector based industries with varying level of exposure, during the critical early adoption window of January 2023 till January 2025. The impact is measured in terms of relation between industry level exposure and growth in realized wage. Based on the data of Pew Research and Stanford HAI, this paper develops an AIOE (Artificial Intelligence Occupational Exposure) index and collects hourly wage data from the Bureau of Labour Statistics across ten service sector based supersectors  to conduct a cross-sectional econometric analysis.