Abstract
The aim of the paper is to explore the relationship between skills shortages and the adoption of artificial intelligence (AI) in organizational contexts. While existing literature often considers AI as a substitute for labor, this study addresses a less examined perspective – AI adoption as a strategic response to persistent difficulties in recruiting highly educated and skilled workers. Drawing on theoretical frameworks from human capital theory and labor economics, and using empirical data from small and medium-sized enterprises (SMEs) across 34 developed countries, the analysis demonstrates that labor shortages – particularly at the bachelor’s and master’s education levels – significantly increase the probability of AI implementation. The paper shows that AI is not merely a labor-saving technology, but a means of maintaining competitiveness and scalability under conditions of human capital constraints. However, the adoption of AI is not uniform: it depends on internal readiness and sectoral dynamics, pointing to a paradox: while AI can mitigate talent shortages, it also introduces new demands for technical capabilities. These insights suggest that addressing the talent gap requires integrated strategies across organizational design, workforce development, and public policy.
Paper Type
Full Paper
DOI
10.62036/ISD.2025.10
Skills Shortages as a Driver of AI Adoption: Evidence from Developed Countries
The aim of the paper is to explore the relationship between skills shortages and the adoption of artificial intelligence (AI) in organizational contexts. While existing literature often considers AI as a substitute for labor, this study addresses a less examined perspective – AI adoption as a strategic response to persistent difficulties in recruiting highly educated and skilled workers. Drawing on theoretical frameworks from human capital theory and labor economics, and using empirical data from small and medium-sized enterprises (SMEs) across 34 developed countries, the analysis demonstrates that labor shortages – particularly at the bachelor’s and master’s education levels – significantly increase the probability of AI implementation. The paper shows that AI is not merely a labor-saving technology, but a means of maintaining competitiveness and scalability under conditions of human capital constraints. However, the adoption of AI is not uniform: it depends on internal readiness and sectoral dynamics, pointing to a paradox: while AI can mitigate talent shortages, it also introduces new demands for technical capabilities. These insights suggest that addressing the talent gap requires integrated strategies across organizational design, workforce development, and public policy.
Recommended Citation
Revtiuk, Y. & Pawlowska-Nowak, M. (2025). Skills Shortages as a Driver of AI Adoption: Evidence from Developed CountriesIn I. Luković, S. Bjeladinović, B. Delibašić, D. Barać, N. Iivari, E. Insfran, M. Lang, H. Linger, & C. Schneider (Eds.), Empowering the Interdisciplinary Role of ISD in Addressing Contemporary Issues in Digital Transformation: How Data Science and Generative AI Contributes to ISD (ISD2025 Proceedings). Belgrade, Serbia: University of Gdańsk, Department of Business Informatics & University of Belgrade, Faculty of Organizational Sciences. ISBN: 978-83-972632-1-5. https://doi.org/10.62036/ISD.2025.10