History has shown that major technological innovations reshaped the skill composition of occupations. Artificial intelligence (AI) is driving a similar transformation today. This chapter begins by showing, through examples of the automobile and computer revolutions, how general-purpose technologies have historically redefined existing jobs and created entirely new ones. Using international job-posting data, the chapter documents the rapid and broad-based rise in demand for AI skills—both technical and AI literacy. The introduction of computers in the mid-20th century offers another vivid example of how technological change, driven by a general-purpose technology, can generate entirely new forms of skilled work. The latest shift has come with AI-powered image generation and editing tools, capable of automatically retouching images, simulating lighting effects, or creating entire scenes from text prompts.
