Authors :
Seyram Amedede; Nguyen Thuy Ha; YAO Tang; Xiaofen Tan
Volume/Issue :
Volume 11 - 2026, Issue 9 - September
Google Scholar :
https://tinyurl.com/2paj7ufu
DOI :
https://doi.org/10.38124/ijisrt/26sep271
Note : A published paper may take 4-5
working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and
ResearchGate.
Abstract :
The rapid diffusion of artificial intelligence (AI) has intensified debates regarding its implications for employment
and the future of work. While some scholars argue that AI complements human labour by enhancing productivity and
creating new employment opportunities, others contend that it displaces workers through automation and task substitution.
This study examines the labour-market consequences of AI across selected Asia-Pacific economies, focusing on whether AI
primarily augments or replaces labour. Drawing on the theoretical foundations of skill-biased technological change, routinebiased technological change, and task-based approaches to technological transformation, the study investigates the
relationship between AI intensity and occupational employment structures using panel data from China, Japan, South
Korea, Hong Kong, and Taiwan over the period 2010-2025. A composite AI Intensity Index is constructed using principal
component analysis, while fixed-effects panel regression models are employed to assess the effects of AI development on
high-skill, middle-skill, and low-skill employment shares. The findings indicate that AI development is positively associated
with high-skill employment but negatively associated with middle-skill employment, suggesting that AI simultaneously
generates labour augmentation and labour displacement effects. These relationships remain robust across alternative
specifications, including lagged AI measures and leave-one-country-out estimations. The results further reveal significant
cross-country heterogeneity, indicating that the labour-market consequences of AI are shaped by differences in institutional
arrangements, innovation capacity, and economic structures, while robustness analyses confirm that the findings are not
driven by any single economy. The study contributes to the emerging literature on AI and employment by demonstrating
that the effects of AI are neither uniformly beneficial nor uniformly disruptive but are instead context-dependent and
manifested through processes of occupational restructuring. The findings underline the importance of adopting nuanced
and comparative perspectives when evaluating the implications of AI for labour markets and workforce transformation.
Keywords :
Artificial Intelligence; Labour-Market Restructuring; Employment; Skill-Biased Technological Change; Routine-Biased Technological Change; Occupational Change; Asia-Pacific.
References :
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The rapid diffusion of artificial intelligence (AI) has intensified debates regarding its implications for employment
and the future of work. While some scholars argue that AI complements human labour by enhancing productivity and
creating new employment opportunities, others contend that it displaces workers through automation and task substitution.
This study examines the labour-market consequences of AI across selected Asia-Pacific economies, focusing on whether AI
primarily augments or replaces labour. Drawing on the theoretical foundations of skill-biased technological change, routinebiased technological change, and task-based approaches to technological transformation, the study investigates the
relationship between AI intensity and occupational employment structures using panel data from China, Japan, South
Korea, Hong Kong, and Taiwan over the period 2010-2025. A composite AI Intensity Index is constructed using principal
component analysis, while fixed-effects panel regression models are employed to assess the effects of AI development on
high-skill, middle-skill, and low-skill employment shares. The findings indicate that AI development is positively associated
with high-skill employment but negatively associated with middle-skill employment, suggesting that AI simultaneously
generates labour augmentation and labour displacement effects. These relationships remain robust across alternative
specifications, including lagged AI measures and leave-one-country-out estimations. The results further reveal significant
cross-country heterogeneity, indicating that the labour-market consequences of AI are shaped by differences in institutional
arrangements, innovation capacity, and economic structures, while robustness analyses confirm that the findings are not
driven by any single economy. The study contributes to the emerging literature on AI and employment by demonstrating
that the effects of AI are neither uniformly beneficial nor uniformly disruptive but are instead context-dependent and
manifested through processes of occupational restructuring. The findings underline the importance of adopting nuanced
and comparative perspectives when evaluating the implications of AI for labour markets and workforce transformation.
Keywords :
Artificial Intelligence; Labour-Market Restructuring; Employment; Skill-Biased Technological Change; Routine-Biased Technological Change; Occupational Change; Asia-Pacific.