Evaluating the effects of AI integration in factories: job displacement vs. new opportunities

Abstract

The integration of artificial intelligence (AI) in manufacturing significantly impacts employment, leading to both displacement of low-skilled jobs and the creation of new opportunities. While routine tasks are increasingly automated, roles requiring advanced skills are emerging, necessitating effective reskilling initiatives. This dual effect presents challenges, as displaced workers face economic uncertainty, but also potential for increased productivity and innovation. Policymakers must navigate this landscape to maximize benefits while minimizing adverse effects on the workforce.