Artificial Intelligence and Employment: Opportunities and Challenges for Youth

Abstract

Artificial Intelligence (AI) is becoming an important source of technological change in modern economies. Its development is influencing the way firms organise production, provide services and allocate tasks between workers and technology. This paper examines the relationship between artificial intelligence and employment, with particular attention to young workers. It adopts a literature-based theoretical approach and discusses the potential employment opportunities and challenges associated with AI. Economic theories of technological change suggest that technology can substitute for labour in some tasks while complementing labour in others. AI may therefore reduce demand for certain routine tasks while increasing demand for workers with analytical, digital, creative and interpersonal capabilities. Recent international evidence also indicates that exposure to generative AI does not necessarily imply complete job replacement; in many occupations, the more likely effect is transformation of existing tasks. The paper discusses the possible effects of AI on labour demand, productivity, occupational change, skills and youth employment. It also highlights the importance of education, reskilling and lifelong learning in helping young people adapt to technological change. The paper concludes that the economic consequences of AI depend not only on the technology itself but also on how firms, educational institutions, governments and workers respond to the transition.