AI and Workforce Dynamics: Unravelling Productivity

This study examines how artificial intelligence (AI) affects worker productivity, emphasising AI's capacity to automate jobs, reduce errors, and optimise workflows. It emphasises the need for dynamic reskilling initiatives and company-school cooperation to provide workers with the necessary skills. Using a two-log econometric model, the study examines the association between AI patents and productivity. It observes that the effects of AI differ across industries, with less automation in positions requiring creativity and emotional intelligence. The paper also suggests more research and examines the relationship between productivity and R&D costs, physical assets, and non-AI patents.