THE IMPACT OF ARTIFICIAL INTELLIGENCE ON LABOR MARKET

Abstract

Abstract: This article studies the impact of AI on labor markets of jobs displacement, creation, productivity gains and policy implications. Based on recent research and reports such as the Institute of Global Affairs, the International Monetary Fund (IMF), and academic research, the analysis argues AI presents both challenges and opportunities. An advanced AI may – according to a frequently cited report of Frey and Osborne9 from the University of Oxford – take over 40% of jobs worldwide, most notably in cognitive tasks; however, it also increases productivity and creates new jobs, raising GDP by 5–14% in high-income countries until the year 2050. The findings highlight the necessity of policies, such as retraining programs and social safety nets, to address inequality and help people transition to an AI-driven economy.