Impacts of artificial intelligence on laborforce, employment and income distribution

Development in the means of production has been a factor that transforms economic and social life throughout the ages. In the process that started with the industrial revolution, this transformation gained an unprecedented momentum. Automation enabled by the electricity and motors has emerged as the driving force of transformation in the past century. This process enters a new phase with the developments in artificial intelligence technology in recent years. Artificial intelligence now brings drastic transformations in several fields, from driverless vehicles to art; from finance to remote medical intervention. It is of utmost importance to examine an element that has an enormous impact over social and economic life within the scope of social policy discipline. It is necessary to discuss its impacts on growth, labor force, income distribution and inequalities from a social policy perspective in order to minimize the destructive effects of developing technologies and to achieve welfare enhancing outcomes. The aim of this study is to contribute to the social policy literature on the impacts of artificial intelligence and related technologies over labor markets, employment and income distribution as well as factors that determine the level and scope of this impact and finally to develop policy recommendations. Considering various fields affected differently based on socio-economic conditions, it is argued that a holistic social policy approach is needed. Keywords: Artificial intelligence, labor force, employment, growth, income distribution, inequalities