The Impact of Artificial Intelligence Application on Job Displacement and Creation: A Systematic Review

Cheng Peiwen, Noorasiah Sulaiman and Shi Zhenglong
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Cheng Peiwen: 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
Shi Zhenglong: 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 4, 2495-2517

Abstract: The advent of artificial intelligence has profoundly impacted the employment landscape, raising concerns about potential job displacement. This paper employs a systematic literature review method and PRISMA approach to collate and synthesise a substantial body of relevant studies of the last 40 years, intending to sort out the impact of AI on the job market and further analyse the opportunities and challenges associated with the effects of artificial intelligence on job substitution, to fill the gaps in the existing studies. It has been demonstrated that artificial intelligence has a discernible displacement effect in specific repetitive and predictable work environments, leading to the obsolescence of some conventional roles. Conversely, it also engenders new employment opportunities and a demand for highly proficient and adaptable professionals. This paper presents a comprehensive analysis of the current situation of job substitution under the influence of artificial intelligence in different industries and regions. It also offers insights into the corresponding policy countermeasures and other aspects to provide a reference point for further understanding and coping with this growing problem. This study systematically reviews the existing literature and suggests future research directions, including combining emerging technologies such as the Internet of Things and blockchain with artificial intelligence.

Date: 2025
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