Artificial Intelligence and Job Transformation: Threat or Opportunity for the Workforce in the Digital Economy?
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Abstract
The development of Artificial Intelligence (AI) has transformed job structures and workforce management in the digital economy. This study examines the implications of AI for workers by analyzing automation risks, skills gaps, and opportunities to improve productivity through human–AI collaboration. The study employs a qualitative descriptive approach through a structured literature review of academic articles and official reports from international institutions. The analysis draws on task-based technological change and human capital theory. The findings indicate that exposure to AI does not automatically lead to job losses, as its effects depend on task characteristics, corporate technology adoption strategies, and workforce skills readiness. The main risks include reduced labor demand for specific tasks, skills gaps, potential skill degradation, and changes in job quality. Conversely, AI creates opportunities to enhance productivity, support business innovation, and develop new competencies and employment opportunities. The Indonesian labor market data examined in this study do not establish a causal relationship between AI adoption and an aggregate increase in unemployment. This study emphasizes that realizing the benefits of AI requires organizations to integrate technology with human capabilities through upskilling, reskilling, and AI literacy development.
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