AI Research
Job Transformation, Specialization, and the Labor Market Effects of AI
Abstract
Who will gain and who will lose as AI automates tasks? While much of the discourse focuses on job displacement, we show that job transformation—a shift in the task content of jobs—creates large and heterogeneous earnings effects. We develop a quantitative, task-based model where occupations bundle multiple tasks and workers possessing heterogeneous portfolios of task-specific skills select into occupations by comparative advantage. Automation shifts the relative importance of tasks within each occupation, inducing wage effects that we characterize analytically. To quantify these effects, we measure the task content of jobs using natural language processing, estimate the distribution of task-specific skills, and exploit mappings to prominent automation exposure measures to identify task-specific automation shocks. We apply the framework to analyze automation by large language models (LLMs). Within highly exposed occupations, like office and administrative roles, workers specialized in information-processing tasks leave and suffer wage losses. By contrast, those specialized in customer-facing and coordination tasks stay and experience wage gains as work rebalances toward their strengths. Our findings challenge the common assumption that automation exposure equates to wage losses.
AI Research
Alberta Follows Up Its Artificial Intelligence Data Centre Strategy with a Levy Framework
Alberta is introducing a levy framework for data centres powering artificial intelligence technologies, the Province recently announced.
Effective by the end of 2026, a 2% levy on computer hardware will apply to grid-connected data centres of 75 megawatts or greater, according to a statement from Alberta.
The levy will be fully offset against provincial corporate income taxes, the government says. Once a data centre becomes profitable and pays corporate income tax in Alberta, the levy will not result in any additional tax burden.
Data centres of 75MW or greater will be recognized as designated industrial properties, with property values assessed by the province. Land and buildings associated with data centres will be subject to municipal taxation.
The framework was forged through a six-week consultation with industry stakeholders, according to Nate Glubish, Minister of Technology and Innovation.
“Alberta’s government has a duty to ensure Albertans receive a fair deal from data centre investments,” the provincial minister remarked. “This approach strikes a balance that we believe is fair to industry and Albertans, while protecting Alberta’s competitive advantage.”
Glubish added that the Alberta government is also exploring other options. This includes a payment in lieu of taxes program that would allow companies to make predictable annual payments instead of fluctuating levy amounts, as well as a deferral program to ease cash-flow pressures during construction and early years of operation.
“After working closely with industry, we’re introducing a fair, predictable levy that ensures data centres pay their share for the infrastructure and services that support them,” commented Nate Horner, Minister of Finance.
“This approach provides stability for businesses while generating new revenue to support Alberta’s future,” he posits.
The decision builds on the Alberta Artificial Intelligence Data Centre Strategy, introduced in 2024.
The strategy aims to capture a larger share of the global AI data centre market, which is expected to exceed $820 billion by 2030 as Alberta becomes a data centre powerhouse within Canada.
However, the Province’s tactics have not gone uncriticized.
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