A Systematic Review of AI’s Impact on Employment and Skill Demand

Shi Zhenglong,, Noorasiah Sulaiman and Chen Peiwen
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Shi Zhenglong,: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi Selangor Malaysia
Noorasiah Sulaiman: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi Selangor Malaysia
Chen Peiwen: Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi Selangor Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 15, 484-507

Abstract: As Artificial Intelligence (AI) continues to evolve and become widely used, its impact on employment and skills has become a major topic of discussion globally, as evidenced by the World Economic Forum’s focus. This Systematic Literature Review (SLR) aims to comprehensively review and analyse relevant research on how AI affects employment structures, creates or replaces jobs, and reshapes skill demand patterns. A comprehensive review of the existing literature suggests that the impact of AI on employment is multifaceted, with new opportunities arising from the emergence of new high-skilled jobs and the rising demand for interdisciplinary talent on the one hand, and new challenges arising from the replacement of low-skilled jobs and the polarization of the employment structure on the other. At the same time, the demand for skills driven by AI is moving towards higher levels of expertise and multidisciplinary integration. This review provides a comprehensive frame of reference for further in-depth research on the relationship between AI, employment and skills demand.

Date: 2025
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