A systematic analysis of the impact of artificial intelligence on job displacement

Abstract

This study aims to critically explore and offer in-depth insights into the impact of AI on job displacement across various sectors and industries. The study employed a qualitative approach, utilizing the preferred reporting items for systematic reviews and meta-analyses (PRISMA) methodology. The sample included 43 scientific studies sourced from the ProQuest and Web of Science scholarly databases. The data were interpreted using thematic analysis. The findings suggest that AI may impact organizational change, creating a paradox by displacing positions in middle- and lower-level roles, while simultaneously generating new employment opportunities in the job market, primarily in cognitive tasks involving training data and algorithms. Additionally, the results indicate that the sectors most susceptible to such changes include healthcare, agriculture, manufacturing, banking, retail, public administration and information and communication technology (ICT). Furthermore, it was concluded that investing in employee training and education through upskilling and reskilling initiatives, as part of change management, can effectively mitigate labor displacement and preserve employment opportunities. This study contributes to the literature on organizational change management by devising strategies to help industries mitigate job displacement arising from AI-enabled technologies. Policymakers, change champions, researchers, industry leaders, decision-makers and strategists in diverse sectors can consider the implications of this study for harnessing AI in policy implementation.