Bankers are afraid of technology now: explaining perceived vulnerability to technological change among the higher-educated

Abstract

The higher-educated are typically seen as winners of technological change and automation, but recent evidence shows that many higher-educated workers are, in fact, concerned about losing their jobs to technology. The reasons why higher-educated workers are worried about technological change are not yet clear, however. We analyse survey data from 25 countries to resolve this puzzle. Our results indicate, in a nutshell, that many higher-educated workers are concerned about being replaced by ‘artificial intelligence’ (AI) and related technologies. Specifically, we find that perceived technological vulnerability among the higher-educated is strongly linked to working in the finance and IT sectors – which are known to be particularly heavily exposed to advances in AI technology. We discuss the implications of technological vulnerability among the higher-educated for social solidarity and political conflict in digitalizing economies.

Keywords

• Labour markets
• technological change
• artificial intelligence
• perceived vulnerability