The Impact of Artificial Intelligence (AI) on Job Displacement and the Future Work

Abstract

This study aims to investigate the impact of artificial intelligence (AI) on employment from the global trend and regional perspective, that is, Pakistan. As AI advances in its capability, it poses a dual threat: displacement of employment, especially in low-skilled areas, while at the same time generating new openings in emerging zones-another challenge posed by AI technologies. This study makes use of Human Capital Theory to assess the necessity of investment in education and training required to prepare the workforce for an AI-enabled economy. The important results suggest that the interventions would hold extensive reskilling as well as upskilling courses as critical in relieving the detrimental effects of job displacement and harnessing the promising potentials created by AI. The research points to the urgent need for specialized workforce development strategies in Pakistan, where a large part of the workforce is engaged in informal employment, to bridge the skills gap and ensure equitable access to training. Results suggest the need for proactive policies, such as creating social safety nets and supporting the lifetime learning programs. The report further states the need for encouraging firms to invest in human capital and redefine job roles so as to capitalize on AI technology. This report supports the cooperative agenda of politicians, educators, and business leaders to build the flexible, strong workforce required in their countries. Such fairness and inclusion would ensure that benefits derived from AI are equally distributed to promote sustainable economic growth in an increasingly automated environment. These findings also suggest specific future areas of study, such as sectorial investigations and evaluation of policy solutions aimed at reducing the adverse effects of AI on employment.