THE IMPACT OF ARTIFICIAL INTELLIGENCE ON THE GLOBAL LABOR MARKET

Abstract

Artificial Intelligence (AI) and the digital economy are transforming the global labor market by
changing employment structures, required skills, and business operations. Automation and digital technologies
have increased productivity and created new employment opportunities while simultaneously replacing routine
jobs. This study examines the impact of AI and digitalization on employment patterns, identifies the sectors
most affected, and analyzes the challenges and opportunities faced by developing countries, with particular
attention to Uzbekistan. The research employs comparative analysis and a review of international reports
published by organizations such as the International Labour Organization (ILO), the World Economic Forum
(WEF), and the Organisation for Economic Co-operation and Development (OECD). The findings indicate that
although AI may reduce demand for certain occupations, it also stimulates the creation of new professions
requiring digital and analytical competencies. The study concludes that governments, educational institutions,
and businesses should cooperate to improve digital literacy, promote lifelong learning, and develop policies that
ensure inclusive labor market transformation.