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A Systematic Review of AI’s Impact on Employment and Skill Demand

Author

Listed:
  • Shi Zhenglong,

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi Selangor Malaysia)

  • Noorasiah Sulaiman

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi Selangor Malaysia)

  • Chen Peiwen

    (Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi Selangor Malaysia)

Abstract

As Artificial Intelligence (AI) continues to evolve and become widely used, its impact on employment and skills has become a major topic of discussion globally, as evidenced by the World Economic Forum’s focus. This Systematic Literature Review (SLR) aims to comprehensively review and analyse relevant research on how AI affects employment structures, creates or replaces jobs, and reshapes skill demand patterns. A comprehensive review of the existing literature suggests that the impact of AI on employment is multifaceted, with new opportunities arising from the emergence of new high-skilled jobs and the rising demand for interdisciplinary talent on the one hand, and new challenges arising from the replacement of low-skilled jobs and the polarization of the employment structure on the other. At the same time, the demand for skills driven by AI is moving towards higher levels of expertise and multidisciplinary integration. This review provides a comprehensive frame of reference for further in-depth research on the relationship between AI, employment and skills demand.

Suggested Citation

  • Shi Zhenglong, & Noorasiah Sulaiman & Chen Peiwen, 2025. "A Systematic Review of AI’s Impact on Employment and Skill Demand," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(15), pages 484-507, April.
    • Handle: RePEc:bcp:journl:v:9:y:2025:i:15:p:484-507
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    References listed on IDEAS

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    1. Chitra Dhanapal & N. Asharudeen & Sabina Yasmin Alfaruque, 2024. "Impact of Artificial Intelligence Versus Traditional Instruction for Language Learning: A Survey," World Journal of English Language, Sciedu Press, vol. 14(2), pages 182-182, March.
    2. Shuai Shao & Zhanzhong Shi & Yirong Shi, 2022. "Impact of AI on employment in manufacturing industry," International Journal of Financial Engineering (IJFE), World Scientific Publishing Co. Pte. Ltd., vol. 9(03), pages 1-18, September.
    3. Agrawal, Ajay & Gans, Joshua S. & Goldfarb, Avi, 2019. "Exploring the impact of artificial Intelligence: Prediction versus judgment," Information Economics and Policy, Elsevier, vol. 47(C), pages 1-6.
    4. Alexandre Georgieff & Raphaela Hyee, 2021. "Artificial intelligence and employment: New cross-country evidence," OECD Social, Employment and Migration Working Papers 265, OECD Publishing.
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