Research progress on the impact of artificial intelligence on the labor market

Abstract

The application and development of artificial intelligence has exerted an important influence on the labor market. The existing literature mainly studies the impact of artificial intelligence on the total amount of employment and the employment structure. This paper argues that AI has the potential to reshape the labor market in many ways, with the potential to realize the leisure age of Keynes. AI can increase productivity and efficiency through automation of everyday tasks and may replace work through automation of everyday tasks. Governments need to adopt aggressive policies to address the potential trade-off between automation and unemployment. Investing in education and training programs is critical due to skill changes caused by AI. Therefore, this paper also provides further policy suggestions on how to deal with the possible employment shock caused by AI.