IMPACT OF ARTIFICIAL INTELLIGENCE AND AUTOMATION ON THE LABOR MARKET

Abstract

The article analyzes the impact of artificial intelligence (AI) and automation on the labor market, addressing technological transformations and their consequences on the employment sector. Throughout history, several industrial revolutions have shaped the dynamics of work, with the third industrial revolution, marked by the advancement of automation and AI, being one of the most impactful. Technological innovations have replaced many human tasks, causing jobs to shrink in routine industries, and creating new opportunities in specialized fields like data science and AI development. The study highlights the growing need for professional qualification, as workers need to adapt to new market demands, which can increase socioeconomic inequality. While the upper classes have better training opportunities,  lower-class workers face difficulties repositioning themselves in the market, increasing unemployment in certain sectors. However, these innovations can bring economic benefits, promote socioeconomic development, and improve the country's competitiveness. The article concludes that to maximize the benefits and mitigate the negative impacts, a greater emphasis is needed on public and private policies that foster education and training, and encourage national innovation, ensuring a more inclusive transition for all of society.