Analysis of the Effect of Artificial Intelligence on the Labor Market in the United States

Abstract

Artificial intelligence(AI) is facing rapid development, which presents both opportunities and risks. The Unities States, the worlds largest economy and a leading technological power, has witnessed significant advancements in AI. As an integral part of automated production, AI drives economic productivity, but it alters the demands and structure of the United States labor market. Increasing joblessness and a decrease in the number of people actively participating in the workforce imply that AI holds the capability to substitute human employment, thereby highlighting the importance of individuals adapting to changing labor demands. Research indicates that individuals with lower educational attainment and limited cultural proficiency face a greater likelihood of being replaced by artificial intelligence (AI). However, the evolving labor market demands a greater emphasis on AI-related skills. The potential of AI to foster the development of the United States labor market is evident, as it holds the capacity to drive further innovation and growth in the American economy. This research paper takes IBM, who officially announced the use of AI as a replacement for human labor, as a case study to examine the influence of AI on the labor market in the United States., exploring the opportunities and risks brought by AI development.