UNPACKING THE UNEMPLOYMENT PUZZLE IN THE AGE OF ARTIFICIAL INTELLIGENCE: AN ECONOMETRIC PANEL ANALYSIS OF GLOBAL TECH LEADERS

Authors

  • Maleeha Rashid
  • Zahid Iqbal
  • Ayesha Anwar
  • Muhammad Ghulam Shabeer

Keywords:

UNPACKING THE UNEMPLOYMENT, PUZZLE IN THE AGE OF ARTIFICIAL INTELLIGENCE, ECONOMETRIC PANEL ANALYSIS OF GLOBAL TECH LEADERS

Abstract

This study focuses on how the impact of Artificial Intelligence (AI)-driven Research & Development (R&D) and the effects of ICT goods exports and ICT goods imports affect unemployment among the top eight high-tech countries by using the data during the years 2010 to 2023 and by employing Driscoll-Kraay standard errors estimation technique, it reveals that there exists a negative significant relationship between the independent variables and the dependent variable that are the AI-led R&D and unemployment, which indicates job creation by productivity. The ICT goods exports also lower unemployment by promoting industries that utilize technology, whereas ICT imports imply employment loss through labor substitution. The results confirm the creative destruction theory, which suggests that strategic investment in innovation and AI has the potential to transform labor markets towards high-skilled jobs.

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Published

2025-07-05

How to Cite

Maleeha Rashid, Zahid Iqbal, Ayesha Anwar, & Muhammad Ghulam Shabeer. (2025). UNPACKING THE UNEMPLOYMENT PUZZLE IN THE AGE OF ARTIFICIAL INTELLIGENCE: AN ECONOMETRIC PANEL ANALYSIS OF GLOBAL TECH LEADERS. Policy Research Journal, 3(7), 100–111. Retrieved from https://theprj.org/index.php/1/article/view/761