AI-Driven Transformation in Employment and Labor Income:  A Global Analysis of Workforce Dynamics

Yuhong Gao

doi:10.47743/saeb-2025-0021

Authors

Yuhong Gao School of Economics, Fudan University, Shanghai

DOI:

https://doi.org/10.47743/saeb-2025-0021

Keywords:

artificial intelligence, sectoral employment, labor income share.

Abstract

Artificial intelligence (AI) technology has profoundly transformed the landscape of work, exerting substantial influence on employment and labor income dynamics. This study leverages global AI index data to investigate the implications of AI adoption on employment rates and labor income shares. The findings reveal a detrimental effect of AI on both employment opportunities and the proportion of income allocated to labor, with these impacts varying significantly among different worker demographics and across various countries. By unpacking the current effects of AI technology on the labor market, this paper provides valuable insights and potential strategies to address and mitigate the adverse outcomes associated with the integration of AI in the workforce.

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