Artificial intelligence is a modern scientific discovery of our times, which may be either a blessing or a curse depending on who is in charge of the decision-making processes. It affects plenty of people’s life sectors, such as, among others, the professional one. If we study human history through time, we can observe that each technological improvement was used to reshape the labor market (Karippacheril). For instance, the Industrial Revolution completely changed the labor market’s structure and consistency. Particularly, a lot of people’s jobs were replaced by machines. Nowadays, there are speculations that history will be repeated and AI will replace various kinds of human jobs, exactly like the Industrial Revolution did.

In detail, almost 40% of global employment is currently exposed to AI, while approximately 60% of all kinds of jobs in general may be impacted by AI soon (Georgieva, 2024). Although AI's consequences are not the same for every country, they are explicitly different. Advanced economic countries are much more exposed to AI because they can support it financially, and as a result, they can benefit from it. On the other hand, developing countries with smaller markets are unable to provide the support needed for AI, not only financially but also in terms of human resources, since employees are characterized by low skills. Consequently, extreme inequality between the financially developed and the developing countries is noticed, accompanied by the vast competition for low-skilled jobs in the developing countries’ emerging and non-powerful labor markets.

Based on the previous data, employees’ income is going to be negatively affected in both markets. In the advanced markets, highly technologically skilled employees will be searchable and well-paid, while employees without technological skills will face extreme competition and severe unemployment in both cases, but mostly in the emerging labor markets. Social inequality is an obvious problematic situation here, and it should be figured out. Education’s role is exceptionally important, as are national and international policies as well (Kharate, 2024).

More specifically, everyone should have equal access to continuous technological professional education. Secondly, policymakers should collaborate on an international level to act proactively and protect by law employees’ rights, jobs, and salaries. Last but not least, another way of eliminating AI’s labor market’s inequalities is through imposing taxes in a try of applying the law on the digital sphere. Ethical considerations are mandatory to be taken into account too by those who decide about the above-mentioned topics.

Economists are actively debating the issue of technological unemployment, with a consensus emerging that AI will have a profound impact on the labor market, reshuffling and reshaping jobs across all sectors. The automation driven by AI is expected to lead to substantial job displacement, raising concerns about the future of human work. This is why current policies must focus on shaping a future where the advantages of AI are utilized to support a human-centered approach, ensuring that the technology serves to improve lives rather than exacerbate existing social inequalities.

AI, as a powerful tool created by humans, holds the potential to significantly boost market productivity and efficiency. However, if not managed carefully, it could also deepen market and social inequalities by consolidating wealth in the hands of a few while leaving others behind. This makes it urgent for labor market policies to be designed by law firstly with a keen awareness of AI's adaptability to each country’s unique economic and social landscape and then based on an international level and perspective. Furthermore, there is a pressing need to consider how AI disproportionately benefits wealthier economies, as evidenced by statistical trends, and to develop strategies that prevent these disparities from growing. Ultimately, we always have to remember that there is no machine without humans and that only humans are in charge of every important decision.

References

Georgieva, Kristalina, AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity, IMF Blog, 2024.
Karippacheril, Tina George, What we’re reading about the age of AI, jobs, and inequality, World Bank, 2024.
Kharate, Rutuja, AI’s Impact on Income Inequality, Boston University, 2024.