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Artificial intelligence and labor market outcomes

Nick Drydakis

IZA World of Labor, 2025, No 514, 514

Abstract: Artificial intelligence (AI) has streamlined processes, improved workforce allocation, and created new jobs to meet the needs of digitalization and automation. Individuals with AI capital experience greater employment opportunities and higher wages, particularly in high-skilled roles and large firms. Training in AI helps reduce gender-based digital disparities, empowers individuals, and enhances their employability. Policymakers should promote inclusive AI development policies to prevent widening AI-related divides and unemployment, and to ensure equitable opportunities.

Keywords: artificial intelligence; AI; AI capital; employment; wages (search for similar items in EconPapers)
JEL-codes: E24 J24 J31 O14 O33 Q55 (search for similar items in EconPapers)
Date: 2025
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