Policy Perspectives on Mitigating the Impact of AI on the Labor Market

Abstract

AI, a novel form of workforce, functions akin to traditional employees, with labor needs stemming from it. Labor is a crucial production element, with test products as primary raw materials. Yet, the worth of labor lies not in its wages but in what it produces. AI tends to substitute and enhance work, significantly affecting past and future labor markets. In previous labor markets, AI has replaced some jobs, decreasing certain types of employment. Jobs that can be easily substituted by artificial intelligence usually involve highly repetitive tasks, such as basic tasks performed on assembly lines. They can be easily substituted with automated machinery, as they do not include intricate thinking and decision-making processes, thus allowing for efficient and fatigue-free operations. This paper analyses the policy perspective on mitigating the impact of AI on the labor market, including the adaption and transformation of the labor markets, changes in educational needs, and workplace environments. In addition, we introduce the short-run effects and long-run effects brought by AI, such as job displacement, skill mismatch, and income inequality. Some recommendations are put forward to solve these problems. We hope that this paper will provide some references for the relevant research.