Artificial Intelligence and Employment: A Delicate Balance Between Progress and Quality in China

Abstract

The quality of employment is significantly impacted by the transformation of global labor markets resulting from artificial intelligence (AI). This study investigates the impact of AI on employment quality in China, with an emphasis on regional disparities between prefecture-level cities. Using panel data and a two-way fixed-effects model, we investigate how AI adoption affects employment outcomes, taking into account industrial structure and economic development. The findings show that while AI adoption increases productivity, it has varying implications on employment quality due to geographical differences. Relevant government rules and focused policies are critical for reducing negative impacts and encouraging long-term employment. This research makes concrete recommendations for policymakers and contributes to the worldwide conversation about AI and labor market developments.