aceMake or buy AI? Evidence on AI sourcing decisions and workforce outcomes
We examine how firms acquire artificial intelligence (AI) capabilities and how their AI sourcing decisions relate to workforce outcomes. Using Swedish enterprise surveys from 2019 and 2021 linked to financial statements and employer–employee data, we directly observe whether firms adopt AI and whether they outsource AI-related activities. AI adoption is concentrated among larger firms. Among adopters, pre-existing cost pressure is associated with outsourcing. Relative to non-adopters, both in-house adopters and…
Swedish firms that adopted AI, whether building it in-house or outsourcing it, had higher subsequent employment and persistently higher shares of university-educated and CS-educated workers than non-adopters.
The source reports associations rather than proven causal effects, and it observes workforce composition only for the year after adoption, so longer-term effects remain unknown.
Evidence
- Peer-reviewedApplied Economics Letters2026-10-14
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Truvace Impact Record TRV-2026-1508, v1: “Make or buy AI? Evidence on AI sourcing decisions and workforce outcomes.” Truvace, 2026-10-15. /record/TRV-2026-1508 (accessed at citation time). sha256 175661a49f87c27b…
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