International Scientific Journal of Engineering and Management

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ISSN: 2583-6129

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AI and the Transformation of Human Employment: Challenges, Opportunities and Future Prospects

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Published 27 April 2026
Updated 27 April 2026

AI and the Transformation of Human Employment: Challenges, Opportunities and Future Prospects

Authors

Dr. Kasa Ravindra1, Dr. Suresh Kurumalla2, Bandi Harshini3

1Professor&Director, Department of Electronics and communication Engineering,

St. Martin’s Engineering College, Hyderabad, India

drkasaravindra@gmail.com

¹Professor, Department of Computer Science and Engineering,

St.Martin’s Engineering College, Hyderabad, India

kurumallaasuresh@gmail.com

²Student, Department of Computer Science and Engineering,

St.Martin’s Engineering College,Hyderabad, India

harshinibandi1@gmail.com

Abstract

The accelerating deployment of artificial intelligence across industries has fundamentally altered the structure of global labour markets. This paper presents a systematic analysis of how AI-driven automation and augmentation are reshaping employment landscapes, with emphasis on sector-level disruption, skill transformation, and socioeconomic consequences. Drawing on interdisciplinary literature spanning economics, computer science, organizational behaviour, and public policy, this review examines empirical evidence on job displacement and creation, the emergence of new occupational categories, and the distributional effects of technological adoption. The study evaluates both the short-term transitional risks and the long-term productivity gains associated with AI integration in the workforce. Special attention is given to vulnerable populations, including low-skill workers, aging labour forces, and developing economies. The review further explores policy frameworks, reskilling initiatives, and institutional adaptations required to ensure inclusive technological progress. Findings indicate that while AI displaces routine cognitive and manual tasks, it simultaneously generates demand for higher-order problem solving, emotional intelligence, and human-AI collaboration skills. The paper concludes with a roadmap for balancing technological innovation with human-centred labour policy.

Keywords: Artificial intelligence, Labour market transformation, Job displacement, Reskilling, Human-AI collaboration, Future of work, Automation, Employment policy

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