THE IMPACT OF ARTIFICIAL INTELLIGENCE ON LABOR MARKET

Аннотация

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. Keywords: Artificial intelligence (AI), labor market, job displacement, employment, productivity, policy, inequality. Introduction: Machines and algorithms in the artificial intelligence (AI) sector are working much faster than previously thought, throwing up fundamental questions about their impact on employment. Even as AI can boost productivity, spur growth, and open new markets, it also has the potential to displace workers, widen wage inequality, and lower labor’s share of national income. These dynamics are critically important for policymakers, firms, and workers to negotiate the transition to an AI-mediated future successfully. This article examines the role of AI on labor markets. It draws on analysis from recent studies, including contributions published by the Institute of Global Affairs, the IMF and various academic papers, to offer a thorough account of the 7-To’plam 1-son Iyul , 2025 12 Ilm fan taraqqiyotida raqamli iqtisodiyot va zamonaviy ta'limning o'rni hamda rivojlanish omillari impact of AI on employment, wages and productivity. The analysis also underlines the policy conclusions to meet the challenges and exploit the opportunities. Research data and methods: This study examines how AI technologies influence labor markets by analyzing secondary data from leading sources like IMF reports, OECD database, and NBER working papers. The study uses comparative analysis on employment and wage data from sectors known to be high AI adopters. Furthermore, with SWOT analyzes this study examines Ai impact on labor market. The results are enriched with cases from technology companies and government policy texts for pragmatic insights. The approach is based on the synthesis of research, given the constraints of regional differences in data coverage and a rapidly changing technology environment for AI. Literature review: Many scholars have researched the role of artificial intelligence in job market, and examined the reasons behind the impact of the artificial intelligence on those fields. While some researchers studied the role of AI in one specific country, others examined AI’s impact on all over the world. One of the researches conducted by Institute of global affairs1. The Institute of global affairs carried out a detailed study of the effects of AI on the labor market where they identify that 23.8% of UK private-sector work hours (means 6 million worker annual output) are automatable. As for the 1-3 million jobs that the report suggests might vanish, it does argue that new jobs would probably replace those lost, and the overall gain, even after adjusting for the reduction in employment and the additional cost of retraining redundant workers, will inevitably increase national income by 11% (in other words £300bn/year) by 2050. 1 Institute for Global Change. (2023). The impact of AI on the labor market: Will productivity gains bring shared prosperity? https://institute.global/insights/economic-prosperity... 7-To’plam 1-son Iyul , 2025 13 Ilm fan taraqqiyotida raqamli iqtisodiyot va zamonaviy ta'limning o'rni hamda rivojlanish omillari Similar research was conducted by the IMF2 where the number of jobs that are exposed to AI is reported to be 40% at the global level and 60% in advanced economies. Crucially, AI is expected to destroy and create jobs, but will likely exacerbate the gap in income when high-skilled jobs are disproportionately affected. Webb3 used a novel technique for comparing job tasks by AI job to patent summaries to show that AI mainly displaces high-skilled labor – an inversion of historical trends in automation. His models indicate that AI could erase 90:10 wage inequality but leave top 1% earners untouched. NBER4 published recent work that used NLP methods to gauge task-level AI exposure. They find that demand for labor falls where AI can standardize tasks but rises where workers can shift to complementary tasks. The analysed studies provide insights into how artificial intelligence is reshaping the world's labormarkets. These analyses highlight both the problems of job displacement and wage inequality, especially for high-skilled workers as well as the potential for remedie