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

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  • Yuhong Gao

    (School of Economics, Fudan University, Shanghai)

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.

Suggested Citation

  • Yuhong Gao, 2025. "AI-Driven Transformation in Employment and Labor Income: A Global Analysis of Workforce Dynamics," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 72(2), pages 165-183, June.
    • Handle: RePEc:aic:saebjn:v:72:y:2025:i:2:p:165-183:n:7
    DOI: 10.47743/saeb-2025-0021
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