Artificial Intelligence Impact On Unemployment In China

Problem Artificial Intelligence nowadays largely implemented in our daily lives.The variety of different industries and big companies use AI solutions for various business tasks continuingly growing.In the last decade,Artificial Intelligence development not only did not stop,but conversely it accelerated with tremendous speed.Since this technology is taking over the world,it is important for scholars,chief executives,government workers and researchers deeply inquire into this area.They all share the same concern that Artificial Intelligence revolution will cause a vast worldwide unemployment.There is a gap in understanding of these going processes that will be the area of study for this dissertation.Aim This research is keen to demonstrate negative effects of AI implications on employment rates.It’s expected to see that every change in amount of Artificial patents will affect employment rates in negative way.Because of high levels of uncertainty on such object as AI this research also proposes null hypothesis that is not laying any correlation on given variables.Research Design This research is contained of bibliographical research,developing theoretical framework and econometric modelling.Findings This dissertation has sought to understand whether current technological anxiety concerning artificial intelligence is justified,specifically investigating whether ‘’people will lose their jobs because of AI’’.Using China as a research object and dataset of three industrial sectors utilizing GMM-system estimators,it evaluated the impact of artificial intelligence development on employment.This paper proposed that there is strong relationship between specific kind of technological progress and employment,it argues that it is a highly relevant topic,essential to understanding the declining size of the middle classes and the future outlook of our societies,with this thesis seeking to fill some of the gaps in the literature.It has sought to do so by approaching the impact of artificial intelligence development on unemployment rates utilizing patent data – a relatively tested methodology.The results of this paper are not indicative,because some outputs do not have robust values,thus null hypothesis cannot be denied in this research case.Research limitations This paper assumes that patents from IPC categories are also used in the sectors from the ISIC Rev.4.While this is not unlikely,it is possible that some of the patents are not used in the sectors this paper links them with,thus potentially spuriously linking patents and changes in the employment rate.Moreover,this paper assumes all patents to be of equal importance;this arguably is a limitation,as it is unlikely that every patent has a similar impact on productivity or the labor market.While it is possible to account for this by controlling for the number of patent citations,these numbers were not available for the dataset used in this dissertation.