IDEAS home Printed from https://ideas.repec.org/p/erg/wpaper/1796.html

The Role of Artificial Intelligence Within the Algerian Economy: Opportunity or Threat to the Job Market?

Author

Listed:
  • Rachid Azzaz

    (l'École Nationale Supérieure de Statistique et d'Économie Appliquée (ENSSEA))

  • Lylia Sami

    (Laboratory for Studies and Research in Digital Economy (LEREN))

Abstract

Artificial intelligence (AI) is transforming global labor markets, offering opportunities to boost productivity and create industries while raising concerns about job displacement and inequality. For Algeria, an oil-dependent economy, AI presents opportunities to diversify and improve efficiency as well as risks such as unemployment, skill gaps, and delayed adoption due to technological gaps and institutional constraints. This study adopts a novel approach that estimates automation risk by mixing the probabilities of the capabilities required for various occupations using occupational databases and crosswalks. These probabilities were adjusted with a correction factor accounting for the slower technology adoption in emerging markets, inspired by historical patterns. The findings reveal a significant lag in AI adoption, with Algeria’s automation trailing that of advanced economies by approximately 2.5 times the required time. Some qualitative insights from interviews with managers and employees are consistent with our results, and the study concludes that Algeria faces minimal immediate AI risks. Integration and its consequences are likely to be delayed due to industrial dependency and competitive pricing from developed countries. These findings provide a foundation for future MENA-wide studies on the impact of AI on labor markets.

Suggested Citation

  • Rachid Azzaz & Lylia Sami, 2025. "The Role of Artificial Intelligence Within the Algerian Economy: Opportunity or Threat to the Job Market?," Working Papers 1796, Economic Research Forum, revised 20 Oct 2025.
    • Handle: RePEc:erg:wpaper:1796
    as

    Download full text from publisher

    File URL: https://erf.org.eg/publications/the-role-of-artificial-intelligence-within-the-algerian-economy-opportunity-or-threat-to-the-job-market-2/
    Download Restriction: no
    File URL: https://erf.org.eg/app/uploads/2025/10/1759409005_820_1567394_1796.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Melanie Arntz & Terry Gregory & Ulrich Zierahn, 2016. "The Risk of Automation for Jobs in OECD Countries: A Comparative Analysis," OECD Social, Employment and Migration Working Papers 189, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claude Paraponaris, 2017. "Plateformes numériques, conception ouverte et emploi," Post-Print halshs-01614430, HAL.
    2. Caroline Lloyd & Jonathan Payne, 2021. "Fewer jobs, better jobs? An international comparative study of robots and ‘routine’ work in the public sector," Industrial Relations Journal, Wiley Blackwell, vol. 52(2), pages 109-124, March.
    3. Lütkenhorst, Wilfried, 2018. "Creating wealth without labour? Emerging contours of a new techno-economic landscape," IDOS Discussion Papers 11/2018, German Institute of Development and Sustainability (IDOS).
    4. Arntz, Melanie & Gregory, Terry & Lehmer, Florian & Matthes, Britta & Zierahn, Ulrich, 2016. "Arbeitswelt 4.0 - Stand der Digitalisierung in Deutschland: Dienstleister haben die Nase vorn (Current state of digitalisation in Germany : Service Providers are one step ahead)," IAB-Kurzbericht 201622, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Liu, Shasha & Wu, Yuhuan & Kong, Gaowen, 2024. "Politics and Robots," International Review of Financial Analysis, Elsevier, vol. 91(C).
    6. Cristiano CODAGNONE & Giovanni LIVA & Egidijus BARCEVICIUS & Gianluca MISURACA & Luka KLIMAVICIUTE & Michele BENEDETTI & Irene VANINI & Giancarlo VECCHI & Emily RYEN GLOINSON & Katherine STEWART & Sti, 2020. "Assessing the impacts of digital government transformation in the EU: Conceptual framework and empirical case studies," JRC Research Reports JRC120865, Joint Research Centre.
    7. Thomas Horvath & Peter Huber & Ulrike Huemer & Helmut Mahringer & Philipp Piribauer & Mark Sommer & Stefan Weingärtner, 2022. "Mittelfristige Beschäftigungsprognose für Österreich und die Bundesländer. Berufliche und sektorale Veränderungen 2021 bis 2028," WIFO Studies, WIFO, number 32632284.
    8. Zilian, Laura S. & Zilian, Stella S. & Jäger, Georg, 2021. "Labour market polarisation revisited: evidence from Austrian vacancy data," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 55, pages 1-007.
    9. Sandra M. Leitner & Robert Stehrer, 2019. "The Automatisation Challenge Meets the Demographic Challenge: In Need of Higher Productivity Growth," wiiw Working Papers 171, The Vienna Institute for International Economic Studies, wiiw.
    10. John Burgess & Julia Connell, 2020. "New technology and work: Exploring the challenges," The Economic and Labour Relations Review, , vol. 31(3), pages 310-323, September.
    11. Santana, Monica & Cobo, Manuel J., 2020. "What is the future of work? A science mapping analysis," European Management Journal, Elsevier, vol. 38(6), pages 846-862.
    12. Emil Sundstrup & Annette Meng & Jeppe Z. N. Ajslev & Karen Albertsen & Flemming Pedersen & Lars L. Andersen, 2022. "New Technology and Loss of Paid Employment among Older Workers: Prospective Cohort Study," IJERPH, MDPI, vol. 19(12), pages 1-13, June.
    13. Wojciech Hardy & Roma Keister & Piotr Lewandowski, 2016. "Technology or Upskilling? Trends in the Task Composition of Jobs in Central and Eastern Europe," HKUST IEMS Working Paper Series 2016-40, HKUST Institute for Emerging Market Studies, revised Dec 2016.
    14. Colombo, Emilio & Mercorio, Fabio & Mezzanzanica, Mario, 2019. "AI meets labor market: Exploring the link between automation and skills," Information Economics and Policy, Elsevier, vol. 47(C), pages 27-37.
    15. Gries, Thomas & Naudé, Wim, 2020. "Artificial Intelligence, Income Distribution and Economic Growth," GLO Discussion Paper Series 632, Global Labor Organization (GLO).
    16. Santiago José Gahn, 2025. "Path dependence in the digital adoption process: a cross-section analysis of Italian firms with a special focus on the Apulia region," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 52(4), pages 967-987, December.
    17. Armanda Cetrulo & Dario Guarascio & Maria Enrica Virgillito, 2020. "Anatomy of the Italian occupational structure: concentrated power and distributed knowledge," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(6), pages 1345-1379.
    18. Montobbio, Fabio & Staccioli, Jacopo & Virgillito, Maria Enrica & Vivarelli, Marco, 2022. "Robots and the origin of their labour-saving impact," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    19. Włoch, Renata & Śledziewska, Katarzyna & Rożynek, Satia, 2025. "Who's afraid of automation? Examining determinants of fear of automation in six European countries," Technology in Society, Elsevier, vol. 81(C).
    20. Christine Mayrhuber & Julia Bock-Schappelwein, 2018. "Dimensionen plattformbasierter Arbeit in Österreich und Europa. Implikationen für die soziale Sicherheit," WIFO Studies, WIFO, number 61667.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:1796. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Namees Nabeel (email available below). General contact details of provider: https://edirc.repec.org/data/erfaceg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.