Impact of enterprise artificial intelligence development on human capital structure

Abstract

This study explores how artificial intelligence (AI) adoption influences low-skilled employment. Using data from Chinese A-share listed firms between 2012 and 2022, it reveals several key findings. First, AI adoption significantly reduces the number of low-skilled workers within firms. Second, digital transformation and human capital investment mediate this relationship, indicating that AI not only directly displaces low-skilled jobs but also indirectly influences employment by advancing digital capabilities and upskilling demands. Heterogeneity analysis further shows that these negative effects are more pronounced in non-state-owned enterprises and non-high-tech firms. The findings offer important insights for policymakers, business leaders, and workers, underscoring the need to align technological progress with workforce development in the AI era.