Impact of AI on employment in manufacturing industry
Abstract
Artificial intelligence (AI) is the most significant technological revolution since we entered the 21st century. It has become a new focus of public attention and international competition. Industrial integration with AI technology not only brings vast opportunities for transformation and upgrading of enterprises but also has an impact on employment structure. Focusing on the fusion of the manufacturing industry integrating AI, we analyze the integration progress of AI and segmented manufacturing industries, describe a supply-and-demand situation of labor market with different skills, and discuss the impact of AI technology on manufacturing employment theoretically. Then we construct the propensity score matching–difference-in-difference model, divide intelligent manufacturing enterprises into various categories, and inspect the influences on the employment structure of different segmented manufacturing enterprises before and after integrating AI technology. Finally, we put forward efficient methods of transformation and upgrading of manufacturing enterprises and practical suggestions to solve problems on employment structure.
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Shao et al. (2022) found that the primary impacts of AI integration in manufacturing include an increase in demand for high-skilled labor and a relative reduction in demand for low-skilled workers, along with increased investments in research and development.
“The primary impacts include an increase in demand for high-skilled labor and a relative reduction in demand for low-skilled workers, along with increased investments in research and development”
From Impacts of generative artificial intelligence on the future of labor market: a systematic review (2025) · cites this paper as Shao et al. (2022)
Shao et al. (2022) reported that integration with other job analysis methods can provide more precise insights into the work environment and improve decision-making.
“integration with other job analysis methods can provide more precise insights into the work environment and improve decision-making.”
From Impacts of generative artificial intelligence on the future of labor market: a systematic review (2025) · cites this paper as Shao et al. (2022)
Shao et al. (2022) demonstrated that the integration of AI with manufacturing activities leads to various changes in the labor market and employment structure.
“This article examines the impact of Artificial Intelligence (AI) technology on employment structures in smart manufacturing companies, demonstrating that the integration of AI with manufacturing activities leads to various changes in the labor market and employment structure.”
From Impacts of generative artificial intelligence on the future of labor market: a systematic review (2025) · cites this paper as Shao et al. (2022)
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Impacts of generative artificial intelligence on the future of labor market: a systematic review
Salari, N., Beiromvand, M., Hosseinian-Far, A., Habibi, J., Babajani, F., & Mohammadi, M. (2025) · Computers in Human Behavior Reports · doi:10.1016/j.chbr.2025.100652 · Cited by 49 · see citing works
“Shao et al. (2022) also emphasize pertinent challenges such as the increase in the costs of low-skilled labor and the necessity of optimizing the structure of the labor force in the transformation process.”
- Authors
- Shao, S., Shi, Z., & Shi, Y.
- Affiliations
- Shanghai Jiao Tong University (CN)
- Queen’s University, Kingston, Ontario, Canada
- Corresponding author
- Shao, Shuai
- Venue
- International Journal of Financial Engineering
- Publisher
- World Scientific Pub Co Pte Ltd
- Published
- 2022-03-23
- Volume
- 09
- Issue
- 03
- ISSN
- 2424-7863 (ISSN-L)
- 2424-7944
- OpenAlex
- W4220794433
- Cited by
- 13
- References
- 6
- Citations by year
- 2026: 4 · 2025: 4 · 2024: 4 · 2023: 1
- FWCI
- 1.81
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- International Journal of Financial Engineering (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Labor market dynamics and wage inequality
- Social Sciences › Decision Sciences › Management Science and Operations Research › Impact of AI and Big Data on Business and Society
- Social Sciences › Sociology and Political Science › Digital Economy and Work Transformation
- Keywords
- artificial intelligence, manufacturing employment, employment structure, smart manufacturing, labor market segmentation, skills mismatch, enterprise transformation and upgrading
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