Impact of Artificial Intelligence on Employment Patterns and Job Displacement

Abstract

This study investigates the dual impact of Artificial Intelligence (AI) on employment patterns and job displacement, emphasizing the mediating role of organizational adaptation strategies and the moderating influence of education and training systems. Grounded in Task-Based Technological Change (TBTC) and Skill-Biased Technological Change (SBTC) theories, the research employs a quantitative, explanatory, cross-sectional design. Data were collected through a structured questionnaire from 220 employees and managers across diverse sectors actively implementing AI. Structural Equation Modelling (SEM) using SPSS and AMOS validated the hypothesized relationships. The results reveal that AI adaptation significantly transforms employment structures and induces job displacement (β = 0.29, p < 0.001). Organizational adaptation strategies partially mediate this relationship (β = 0.20, p < 0.001), indicating that proactive reskilling, job redesign, and human–AI collaboration mitigate displacement effects. Moreover, education and training systems significantly moderate both AI–organization (β = 0.17, p = 0.001) and organization–employment relationships (β = 0.15, p = 0.005), highlighting that robust learning ecosystems enhance workforce adaptability and resilience. The findings underscore that AI’s impact is contingent upon institutional preparedness, suggesting that technology alone does not determine employment outcomes. The study contributes theoretically by integrating TBTC and SBTC into a unified model and empirically by providing evidence from diverse economic contexts. Practically, it recommends that policymakers strengthen education and training infrastructures and that organizations invest in adaptive strategies to transform AI-induced disruption into sustainable employment opportunities.

Keywords: Artificial Intelligence, Employment Patterns, Job Displacement, Organizational Adaptation, Education and Training, Task-Based Technological Change, Skill-Biased Technological Change