Artificial Intelligence And The Transformation of Labor Markets

Abstract

The rapid advancement of artificial intelligence (AI) technologies, particularly generative AI and large language models, has reignited debates about the future of work and the potential for widespread labor market disruption. This article examines the socioeconomic implications of AI-driven automation through the lens of political economy and labor sociology. Drawing on recent empirical studies, industry reports, and historical analyses of technological transitions, the article evaluates competing claims about the scale and nature of anticipated job displacement. It argues that while AI differs from previous automation technologies in its capacity to perform cognitive and creative tasks, the distributional consequences of AI adoption will be shaped primarily by institutional factors—including labor market regulation, education policy, and corporate governance structures—rather than by the technology itself. The article concludes by assessing policy proposals including universal basic income, portable benefits, retraining programs, and AI taxation as mechanisms for managing the transition.