The rising artificial intelligence revoluation its impact on employment and income

In today's economic life, traditional sectors are being replaced by digitalization in almost every field. It is seen that the rising power of today's world is created by artificial intelligence technologies. It is also important to create economic processes compatible with artificial intelligence in order to attract the young generation's interest in business fields that are compatible with artificial intelligence and to increase productivity, which is one of the goals of countries on the path to economic growth. In this study, the effects of artificial intelligence on finance, education, health, travel, transportation, communications, entertainment and human resources sectors and employment transformations in these sectors are mentioned. While economic efficiency increases with the use of artificial intelligence technologies in production; The issues of contraction in employment and growth in inequality were touched upon. In order to measure the impact of artificial intelligence on employment and income, the study used panel data for the period 2002-2021 for the 10 countries that use relevant technologies the most (Singapore, England, Germany, USA, Finland, Sweden, Canada, France, Denmark, Japan) and Vector. Error Correction Model, Cointegration, Granger and Toda-Yamamoto causality tests were performed. As a result of the analysis, a long-term positive relationship was determined between patent applications, R&D expenditures, high-tech product exports and employment and productivity representing artificial intelligence technologies, and according to the Toda-Yamamoto causality test results, there was a relationship between proxy variables representing artificial intelligence technologies and employment and income. It was concluded that there was a multi-directional causality relationship. As a result, if professions become automated and human workers are replaced by artificial intelligence technologies, the risk of possible unemployment appears to move from jobs that are easiest to automate to jobs that require human intelligence. While digitalization replaces some professions; New employment areas are also emerging. In order not to be affected by these contractions in employment, it is important that those who are actively working in the workforce and those who will join the workforce have skills that cannot be replaced by machines. On the other hand, in order to have competitive power in the local and international economy, it is necessary to keep up with the technologies of the age. In today's conditions, where the transition to automation is gaining momentum, this study is important for both those working in the active workforce and those who will newly join the workforce, considering the possibility that many job fields will disappear or new job areas will emerge.