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The Impact of Artificial Intelligence Application on Job Displacement and Creation: A Systematic Review

Author

Listed:
  • Cheng Peiwen

    (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)

  • Shi Zhenglong

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

Abstract

The advent of artificial intelligence has profoundly impacted the employment landscape, raising concerns about potential job displacement. This paper employs a systematic literature review method and PRISMA approach to collate and synthesise a substantial body of relevant studies of the last 40 years, intending to sort out the impact of AI on the job market and further analyse the opportunities and challenges associated with the effects of artificial intelligence on job substitution, to fill the gaps in the existing studies. It has been demonstrated that artificial intelligence has a discernible displacement effect in specific repetitive and predictable work environments, leading to the obsolescence of some conventional roles. Conversely, it also engenders new employment opportunities and a demand for highly proficient and adaptable professionals. This paper presents a comprehensive analysis of the current situation of job substitution under the influence of artificial intelligence in different industries and regions. It also offers insights into the corresponding policy countermeasures and other aspects to provide a reference point for further understanding and coping with this growing problem. This study systematically reviews the existing literature and suggests future research directions, including combining emerging technologies such as the Internet of Things and blockchain with artificial intelligence.

Suggested Citation

  • Cheng Peiwen & Noorasiah Sulaiman & Shi Zhenglong, 2025. "The Impact of Artificial Intelligence Application on Job Displacement and Creation: A Systematic Review," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(4), pages 2495-2517, April.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-4:p:2495-2517
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    References listed on IDEAS

    as
    1. Yang, Chih-Hai, 2022. "How Artificial Intelligence Technology Affects Productivity and Employment: Firm-level Evidence from Taiwan," Research Policy, Elsevier, vol. 51(6).
    2. António B. Moniz & Marta Candeias & Nuno Boavida, 2022. "Changes in productivity and labour relations: artificial intelligence in the automotive sector in Portugal," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 22(2), pages 222-244.
    3. Philippe Aghion & Céline Antonin & Simon Bunel, 2019. "Artificial Intelligence, Growth and Employment: The Role of Policy," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 510-511-5, pages 149-164.
    4. 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.
    5. repec:hal:spmain:info:hdl:2441/7n49nkmngd8448a5ts5gt5ade0 is not listed on IDEAS
    6. repec:spo:wpmain:info:hdl:2441/7n49nkmngd8448a5ts5gt5ade0 is not listed on IDEAS
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