BAHRA UNIVERSITY

SCHOOL OF MANAGEMENT
SHIMLA HILLS, WAKNAGHAT
MBA 4TH SEMESTER

A RESEARCH PAPER ON
AI IMPACT ON JOBS AND SKILLS

SUBMITTED TO: SUBMITTED BY:

DR. ANKITA THAKUR Robin Johnson
BU2023PGMB033
MBA 4th semester

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DECLARATION

I, Robin Johnson hereby declare that this is my original work prepared under the
guidance of Dr. Ankita Thakur. All the sources of material used for this research
paper has been duly acknowledge, I further confirm that the research paper has not
been submitted either in part or in fully to any other higher education institution for
the purpose of earning any degree.

Name – Robin Johnson

Roll no. – BU2023PGMB033

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Acknowledgement
Through this acknowledgement I express my sincere gratitude towards all those
people who helped me in this research paper, which has been a learning experience
This space wouldn’t be enough to extend my warm gratitude towards my research
paper guide Dr. Ankita Thakura for her effort in co-ordinating with my work and
guiding in right direction.
It would be injustice to proceed without acknowledge those vital supports I
received from my beloved classmate and friends, without whom I would have been
half done

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Table of contents

Sr. No. Title Page No.

1. Abstract 5.

2. Introduction 6-8

3. Review of Literature 9-10

4. Research Methodology 11-12

5. Data analysis and interpretation 13-20

6. Findings 21

7. Recommendations 22

8. References 23

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ABSTRACT
This paper investigates the influence of artificial intelligence (AI) on the job
market. With rapid advancements in AI technology, industries worldwide are
experiencing some significant transformations in workforce dynamics. The study
investigates the implications of AI on job creation, displacement, and the overall
economy. By analyzing some existing literature, employing appropriate research
methodologies, and drawing empirical evidence, the paper offers some insights
into the evolving landscape of employment in the AI era.

The development of technologies like AI can lead to both opportunities and

challenges in the job market. It has the potential to create some new types of jobs
while also replacing some existing ones. The impact of AI on employment trends
can be felt across various industries, from manufacturing to customer service.
Additionally, the adoption of AI in the workplace can increase efficiency but may
also result in job loss for some individuals.

As AI continues to advance and become more integrated into various sectors, it is

crucial for policymakers and businesses to adapt to these changes. Strategies to
address the potential implications of AI on employment include upskilling and
reskilling the workforce, promoting lifelong learning initiatives, and implementing
policies that support job creation in emerging industries .

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INTRODUCTION
The study of the impact of artificial intelligence (AI) on employment trends is a
multifaceted exploration that delves into the intricate relationship between
technology and the workforce. With the rapid advancement of AI technologies in
recent years, there has been growing concern about its potential to disrupt
traditional employment patterns and reshape the labour market landscape.
Understanding the background of this study requires an examination of several key
components, including the evolution of AI, its applications across various
industries, and the potential implications for employment.

The background of this study necessitates an understanding of the evolution of

artificial intelligence. AI, broadly defined as the simulation of human intelligence
processes by machines, has undergone significant development since its inception.
From early symbolic AI systems to modern machine learning and deep learning
algorithms, AI has become increasingly sophisticated, capable of performing
complex tasks once thought to be exclusive to human cognition.
Experts regards artificial intelligence (AI) as a factor of production, which has the
potential to introduce new sources of growth and change the way work is done
across industries. For instance, PWC article predicts that AI could potentially
contribute $15.7 trillion to the global economy by 2035. China and the united
states are primed to benefit the most from the coming AI boom, accounting for
nearly 70% of the global impact.

Types of Artificial intelligence

1. Purely reactive

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These machines do not have any memory or data to work with, specializing in
just one field of work. For example, in a chess game, the machines observe the
moves and makes the best possible decision to win

2. Limited memory
These machines collect previous data and continue adding it to their memory.
They have enough memory or experience to make proper decision, but the
memory is minimal. For example, this machine can suggest a restaurant based
on the location data that has been gathered.

3. Theory of mind
This kind of AI can understand thoughts and emotions, as well as interact
socially. However, a machine based on this type is yet to be built.

4. Self-aware
Self-aware machines are the future generation of these new technologies. They
will be intelligent, sentient and conscious.

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REVIEW OF LITERATURE

The integration of Artificial intelligence in various industries has been increasing

rapidly in recent years. As a result, there is growing concern about the potential
impact of these technologies on employment opportunities. According to a study
by the Mckinsey Global institute, upto 800 million jobs could be displaced by the
automation by 2030. Artificial intelligence (AI) is rapidly changing the way
business operate and is expected to have a significant impact on the workforce.

This literature review aims to explore the current research on the impact of AI on
employment opportunities. It will examine the potential effect of these
technologies on different industries and occupations, as well as the potential for
new job creation. The purpose of this literature review is to examine the current
research on the impact of AI on different industries and occupations, as well as the
potential for these technologies to create new employment opportunities.

Frey and Osborne have studied the potential suspectibility of jobs to computerizat
ion and found that low skilled and routine jobs are the most suspectible to
automation. They also suggest that as AI and machine learning technologies
continue to advance, they are also expected to automate tasks that were previously
thought to be the domain of highly skilled workers. Frey and Osborne provide a
comparison analysis of the potential impact of AI on job displacement by
examining the suspectibility of different jobs to automation. They found that low
skilled and routine jobs are most suspectible to automation and the potential jobs
displacement is likely to be significant.

Autor has discussed the history and future of workplace automation and has
highlighted that the impact of technology on employment is not new phenomenon.
Throughout history technological advancements have led to the displacement of
certain jobs while creating new employment opportunities in other area. However,
the rapid pace of technological advancements and increasing capabilities of AI and
machine learning raise concerns that the impact on employment may be more
severe than in the past. Autor examines the historical relationship between
technological advancements and employment, highlighting that while technology

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has led to the displacement of certain jobs while creating new employment
opportunities in other area.

Acemoglu and Restrepo have looked into the evidence from US labour markets
and found that robots and automation lead to job displacement, lower wages and
increasing income inequality. Acemoglu and Restrepo study the impact of
industrial robots on US labour markets, finding that the introduction of robots led
to significant job displacement and a decline in wages for workers in affected
industries. They also find that the negative impact of robots on employment is
concentrated among low skilled workers.

According to international labour organisation AI could also affect income and

wealth inequality within countries. We may see polarization within income
brackets, with workers who can harness AI seeing increase in their productivity
and wages and those who cannot failing behind. Research shows that AI can help
less experienced workers enhance their productivity more quickly. Younger
workers may find it easier to exploit opportunities, while older workers could
struggle to adopt.

According to Adam sheriff AI can lead to the creation of new job categories that
did not previously exist, such as AI specialist, data scientist, and cybersecurity
experts. These roles require a different skill set, focusing more on cognitive and
technical skills. Overall these sources suggest that while AI and machine learning
have the potential to automate many tasks and lead to job displacement. However
it is important to note that the impact of these technologies on employment may
vary by industry and occupation, and that policies and programs may be needed to
mitigate the negative effects and to leverage the positive effects of these
technologies on the workforce. Overall the sources suggest that the integration of
AI and machine learning is likely to lead to significant job displacement,
particularly for low skilled and routine jobs. The potential impact on employment
opportunities also depends on such factors such as the speed of technological
advancements and the ability of workers to adapt to new technologies.

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RESEARCH METHODOLOGY

This study employs a conceptual framework and adopts a descriptive research

design to explore the impact of AI on employment trends.

Sampling method

In this research paper I have used convenience sampling method.

Convenience sampling method is a qualitative sampling strategy that involves

selecting participants based on their accessibility and availability. Rather than
being drawn at random from a bigger population, participants in this strategy are
picked because they are easily available.

Data collection method

 Primary data

Data is collected using google forms, a widely accessible and user friendly online
surveys platform. The survey questionnaire was designed to gather insights from
working age individuals and regarding their experiences, perceptions regarding AI
and its impact on employment trends.

 Secondary data

Secondary data sources included a comprehensive review of existing literature,

such as research articles, published theses, books and weblogs. These sources
provided a foundational understanding of current trends related to impact of AI
on employment.

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Populations

The population under study comprises working age individuals (18-50 years)
across various industries and socio economic background.

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Findings of the study

TABLE-1
Age

Interpretation
Out of total respondents 81.8% respondents falls into 18-24 age group whereas 11.7% falls into 25-34
age group category

TABLE-2
Gender

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Interpretation
Out of total respondents, 53.2% were females and 46.8% were males.

TABLE-3
Response of respondents about their educational background

Interpretation
Out of total respondents, 45.5% respondents were pursuing their master’s degree, 41.6 % respondents
were in their bachelor’s and 9.1% respondents were in high school.

TABLE-4
Response of respondents about their employment status

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Interpretation
Out of total respondents, 62.3% were students, 13% were fully employed, 11.7% were self employed
and 10.4 % were unemployed.

TABLE-5
Response of respondents about their familiarity regarding the concept of AI.

Interpretation
Out of total respondents, 53.2% respondents were partially familiar with the concept of AI, 35.1% were
completely familiar and 11.7% were not familiar at all.

TABLE-6
Response of respondents about the impact of AI on employment in future.

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Interpretation
Out of total respondents, 77.9% respondents believes that AI can impact the employment in future, 16.9
% were not sure about the impact of AI on employment.

TABLE-7
Response of respondents regarding the industry which will have the most
impact on employment.

Interpretation
Out of total respondents, 32.5% respondents believes that the industry that will be mostly impacted by
AI is healthcare, 22.1% believes that education and 22.1% believes that manufacturing will be mostly
impacted and 15.6% believes that finance will be mostly impacted.

TABLE-8
Response of respondents about the most valuable skills in AI job market.

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Interpretation
Out of total respondents 42.9% considers programming as the most valuable skill, 22.1% considers data
analysis, 19.5% considers machine learning and 13% respondents considers problem solving as most
valuable skill.

TABLE-9
Response of respondents regarding the affect of demand on jobs.

Interpretation
Out of total respondents, 51.9% believes that it will increase the demand of jobs whereas 39% believes
that it will decrease the demand of jobs and 9.1% believes that there will be no significant impact on the
demand of jobs.

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TABLE-10
Response of respondents regarding the job roles that will be most in demand
in AI driven economy.

Interpretation
Out of total respondents, 35.1% respondents believes that data scientists will be most in demand, 31.2%
believes that AI ethicist will be in demand and 26% believes that robotics engineer will be in demand.

TABLE-11
Response of respondents regarding the dominance of AI in creating or
replacing jobs.

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Interpretation
Out of total respondents, 44.2% believes that AI will replace the jobs, 27.3% believes that it can either
replace or create new jobs, 18.2% respondents believes that AI will create new jobs and 10.4%
respondents were not sure about it.

TABLE-12
Response of respondents about the job roles which are at most risk of being
replaced by AI.

Interpretation
Out of total respondents, 40.3% believes that administrative tasks are at most risk of being replaced by
AI, 28.6% believes that IT jobs are at most risk and 19.5% believes that manufacturing tasks are at most
risk.

TABLE-13
Response of respondents about any changes in jobs due to introduction of AI.

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Interpretation
Out of total respondents, 59.7% respondents have not experienced any changes due to the introduction
of AI whereas 40.3% respondents have faced changes.

TABLE-14
Response of respondents about any trainings they have received to adapt
changes due to AI.

Interpretation
Out of total respondents, 70.1% respondents have not received any trainings whereas 29.9%
respondents have received trainings to adapt the changes.

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Findings that I have found during survey are:
1. Most of the people are familiar with the concept of AI.
2. Out of total respondents 77.6% respondents believe that AI can impact
employment in future.
3. The industry which would be mostly affected due to AI is healthcare industry.
4. 42.1% respondents feel that programming would be the most valuable skill in AI
job market.
5. 75.3% respondents believe that AI will impact the employment in near future.

6. According to the survey conducted, 33.3% respondents feel that Data

Scientists will be in demand in AI driven economy.
7. 45.3% respondents feel that AI will replace jobs in the future.

8. 37.8% respondents believe that administrative tasks are most at risk of being
replaced by AI.

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Recommendations

1. Create AI training and education initiatives suited to labor market.

2. Encourage collaborations between businesses and academic institutions to close the
skills gap.
3. Put policies in place to assist workers who have lost their jobs, such as programs for
unemployment relief and retraining.
4. To generate new employment possibilities, support entrepreneurship and
innovation in AI-related businesses.

5. Implementing programs to retrain workers for new roles in the AI driven

economy.
6. Developing policies to support workers displaced by automation of AI.
7. Ensuring AI is developed and deployed responsibly to minimise negative
impacts on employment.
8. People should be made aware about AI.
9. Government should imply policies related to AI to maintain

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REFRENCES

Websites

• https://www.researchgate.net/publication/
376414530_A_Research_Paper_on_Impact_of_AI_on_Employability_in_India
• https://ijrpr.com/uploads/V5ISSUE3/IJRPR23768.pdf
• https://ijrpr.com/uploads/V5ISSUE3/IJRPR24148.pdf
• https://journalofbusiness.org/index.php/GJMBR/article/view/2802/3-The-Impact-of- Artificial-
intelligence_JATS_NLM_xml https://www.scribd.com/

Magazines

• Trans Tech India 2024

• Outlook business
• Human Capital
India Forbes

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