Artificial Intelligence as a human capital multiplier: a new economic paradigm

Alexandra-Ioana Murariu, Silviu Mihai Dragomir and Bogdan Mihai Frățilă
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Alexandra-Ioana Murariu: Bucharest University of Economic Studies, Romania
Silviu Mihai Dragomir: Bucharest University of Economic Studies, Romania
Bogdan Mihai Frățilă: Valahia University of Târgoviște, Romania

Theoretical and Applied Economics, 2025, vol. XXXII, issue Special, Summer, 9-18

Abstract: Artificial intelligence (AI) is increasingly perceived both as an opportunity to increase productivity and as a disruptive factor in the traditional labor market. This study analyzes the impact of AI adoption on employment dynamics in the European Union, investigating whether automation leads to job substitution or, on the contrary, to increased efficiency. Using economic data from various sources such as Eurostat, OECD, we compare countries with a high degree of AI implementation (e.g. Cyprus, Ireland) with those where the process is slower and more difficult to implement. Through an empirical approach based on linear regressions and econometric methods, the results indicate that sectors integrating AI alongside the development of digital skills register significant increases in productivity, without having a negative impact on the employment rate. The conclusions underline the importance of adopting public policies focused on reskilling the workforce as well as regulating the AI area of action, so that the benefits are distributed equitably.

Keywords: Artificial Intelligence (AI); economic productivity; human capital; labor market; digitalization. (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:xxxii:y:2025:i:special-summer:p:9-18

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