AI Adoption and Workplace Training

This paper investigates the impact of artificial intelligence (AI) adoption in production processes on workplace training practices, using firm-level data from the BIBB establishment panel on training and competence development (2019-2021). The findings reveal that AI adoption reduces the provision of continuing training for incumbent workers while increasing the share of high-skilled new hires and decreasing medium-skilled hires, thereby contributing to skill polarization. However, AI adoption also increases the number of apprenticeship contracts, particularly in small and medium-sized enterprises (SMEs), underscoring the ongoing importance of apprenticeships in preparing future workers with the skills needed to apply AI in production.