How artificial intelligence penetration affects workers’ job quality? Empirical evidence from China

Artificial intelligence (AI) has evolved to play a transformative role in reshaping labor market patterns, altering how individuals work and the tasks they perform. The study investigates how AI penetration influences workers’ job quality and explores the underlying mechanism of this effect. To more accurately capture the extent of AI application, we establish a measure of AI penetration by applying natural language processing (NLP) techniques in combination with the Bartik instrumental variable approach. Job quality is measured using a multidimensional index. Employing nationally representative data from the China Family Panel Studies, we find that AI penetration significantly improves job quality. Mechanism analysis suggests that workers’ non-cognitive skills play a crucial role in driving this positive effect. We also document substantial heterogeneity in the impact of AI penetration across skill and gender groups. Additional evidence suggests that the effects of AI differ by type: augmentation AI exerts stronger effects on workers’ job quality and occupational status. Overall, this study enriches the literature on technological change and job quality, offering new insights into work patterns and occupational transitions in the AI era.