Analysis of job displacement and creation by artificial intelligence

Abstract

Artificial intelligence (AI) is transforming labor markets through automation, job displacement, and the creation of new employment opportunities. The study uses a descriptive and comparative research design to analyze the impact of artificial intelligence in various industries, using statistical trend analysis, sector comparative assessment, and NVivo-style interview qualitative analysis. The results indicate that industries such as manufacturing and retail trade have high job displacement rates (45% and 35%), while more jobs are created in healthcare and education through artificial intelligence (50% and 60%). A key challenge identified is the AI skills gap, with 84% of respondents highlighting the difficulties of workforce adaptation due to a lack or absence of AI-related training programs. Trend analysis reveals that job creation using artificial intelligence increased by 55% between 2015 and 2025, but most employees are not ready for new roles. Comparative industry analysis indicates that countries and sectors that invest in artificial intelligence retraining programs and artificial intelligence governance policies have lower rates of artificial intelligence-induced unemployment. Beyond economic concerns, this study highlights the psychological and social consequences of AI in the workplace, such as job insecurity, control over work performed, and mental health. To address these issues, governments and corporations must implement AI workforce retraining programs, fair labor policies, and ethical AI implementation strategies. The study concludes that proactive governance of artificial intelligence and workforce adaptation strategies are essential to ensure an inclusive and sustainable transformation of the labor market.