The Economic Impact of Artificial Intelligence and Automation on Labor Markets in Emerging Economies

The Advancement Of Artificial Intelligence (Ai) And Automations Systems Is Making An Even Greater Impact On Global Labour Markets, Especially On Developing Economies. This Paper Analyses The Impact Of Ai And Automation On Employment, Productivity And Income In Developing Countries Over The Period Of 2000-2025. Using Panel Data Across 28 Countries, The Study Employs Fixed Effect Regressions To Discover The 2-Way Impact Of Automation On Productivity And Growth Versus The Deepening Of Structural Unemployment (Within The Low-Skilled Sectors). Further, Economies That Spent More Resources On Education And Easement Of Digital Infrastructure Adapt Better, Create More Jobs, And Even In Sectors Of Ai. On The Contrary, Countries With Weak Social Systems Suffer More Income Inequality And Concentration Of Deserting Labour. The Study Stresses The Need For ‘Adaptive’ Social Systems With Respect To Skill Upgrades, Inclusive New Systems, And Labour Market Exchange. This Study Aims To Respond To The Incorporated Ai And Automation Systems And Their Related Changes In Developing Systems. The Study Deals With The Inequalities That Arise And Provides A Means To Respond To The Changes. This, Along With The Impact Of The Research, Brings To Light The Numerous Factors That Developing Nations Have To Face In The Global Transition.