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Labor·P Space·Evidence-backed problem·Published 2026-07-13

The impact of AI on the labour market

This study explores the impact of artificial intelligence (AI) on the labour market, focusing on changes in job roles, skill requirements, and human resource (HR) practices. Unlike previous surveys that primarily addressed technological aspects, this research systematically integrates technological, organisational, and institutional perspectives. The literature review (2020–2025) shows that AI adoption is closely associated with rising demand for technical and interdisciplinary skills, restructuring of work role…

TRV-2026-0196Peer-reviewedPermanent record — cite & verify
The impact of AI on the labour market

CAN U.S. COMPANIES COMPETE GLOBALLY USING AMERICAN WORKERS? by Congressional Committee. Public domain

The quick read

A peer-reviewed study published April 17, 2026 reviewed literature from 2020 to 2025 on AI in the labour market, examining changes in job roles, skill requirements, and HR practices through technological, organisational, and institutional lenses.

The findings matter because they frame labour market outcomes as shaped less by AI technology itself than by how organisations and policies govern implementation, while leaving open how wage gaps and skill transitions will evolve and which interventions effectively mitigate inequality.

Main points
  • Literature review covering 2020-2025 integrates technological, organisational, and institutional perspectives on AI and work.
  • AI adoption linked to restructuring of work roles and rising demand for technical and interdisciplinary skills.
  • Study finds many jobs transformed not eliminated, with AI operating in augmentation rather than pure substitution mode.
  • Findings point to widening wage gaps between AI-skilled and non-AI-skilled workers.
  • Future of work framed as determined by organisational and policy governance rather than technology alone.
Problem

AI adoption is associated with restructuring of work roles and widening wage gaps between AI-skilled and non-AI-skilled workers.

The rundown

The study is a literature review from 2020 to 2025 that moves beyond purely technological surveys to integrate organisational and institutional perspectives on AI in the labour market and HR practices.

Results highlight dual dynamics: augmentation where many jobs are transformed not eliminated alongside rising demand for technical and interdisciplinary skills, and adverse distributional effects through restructuring and wage gaps, with governance identified as decisive for future outcomes.

Sources

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