A PROJECT REPORT

ON
IMPACT OF AI ON EMPLOYMENT OPPORTUNITY
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT
FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION (MBA)
SESSION-2022-2024

SUBMITTED TO: SUBMITTED BY:

DR. SULOCHNA SYAL ANSHIKA THAKUR
BU2022PGMB07

UNDER THE GUIDANCE OF:

DR. SULOCHNA SYAL
HOD(MANAGEMENT)
SCHOOL OF MANAGEMENT
BAHRA UNIVERSITY, SHIMLA HILLS
Certificate
This is to certify that the project entitled ‘IMPACT OF ARTIFICIAL INTELLIGENCE ON
EMPLOYMENT OPPORTUNITY’ the Bonafide work carried out by Anshika Thakur, student of
MBA, School of Management, Bahra University, Waknaghat (H.P.) during the year 2024, in
the partial fulfilment of requirements for the award of the degree of Master of Business
Administration and the Project has not been formed the basis for award previously of any
degree, diploma, fellowship or any other similar title.

Dr. Sulochna Syal

Head of Department
BU, Waknaghat
 DECLARATION

DECLARATION
I ANSHIKA THAKUR hereby declare that the project report titled “IMPACT OF ARITIFICIAL
INTELLIGENCE ON EMPLOYMENT OPPORTUNITY” submitted by me towards the partial
fulfilment of the requirement for the award of the degree “Master of Business
Administration” from BAHRA UNIVERSITY, WAKNAGHAT. I further declare that the content
of this project is purely a part of this comprehensive project work and the content has not
been furnished from any source thereof, has not formed the basis for the award of any
degree, diploma or any such titles by this institute or any other universities.

ANSHIKA THAKUR
 Acknowledgement

I would like to express my sincere and my deep sense of gratitude to respected Head of
Department, School of Management & my guide Dr. Sulochna Syal who provided me
necessary support, guidance and suggestion for successful completion of this project on the
topic “IMPACT OF AI ON EMPLOYMENT OPPORTUNITY”. I am extremely thankful and pay my
gratitude to School of Management, Bahra University for giving me this opportunity. I would
like express my thanks to all my friends and family who directly or indirectly helped me to
complete this project.

Thanking You
Anshika Thakur
TABLE OF CONTENTS
 CHAPTER-1
INTRODUCTION
 ABSTRACT
Artificial Intelligence (AI) has surfaced as a transformative technology with the eventuality
to reshape colourful aspects of mortal life, including the pool and employment geography.
As AI technologies continue to advance fleetly, there's a growing concern regarding the
implicit impact on job openings and the future of work. This abstract points to give an
overview of the impact of AI on employment, agitating both the challenges and openings
associated with its integration into the pool. AI’s robotization capabilities have formerly
started to disrupt traditional job places. Routine and repetitious tasks that can be fluently
automated are decreasingly being performed by AI systems, leading to a reduction in the
demand for certain types of jobs. diligence similar as manufacturing, client service, and
transportation are particularly susceptible to robotization- driven job relegation. still, it's
important to note that while AI may exclude certain job places, it also has the implicit to
produce new bones although AI can replace certain tasks, it can also compound mortal
capabilities, leading to the creation of new job openings.

INTRODUCTION
Artificial intelligence (AI) is a rapidly growing field that has the potential to revolutionize the
way we interact with technology. At its core, artificial intelligence is a branch of computer
science that focuses on creating machines and software that can think and act like humans.
AI systems are designed to learn from their environment and make decisions based on what
they learn. This means they can be used to automate processes, recognize patterns, and
even solve complex problems. AI is used in many different industries, from healthcare to
finance to manufacturing to retail and many more fields.
Artificial intelligence (AI) is currently one of the hottest buzzwords in tech and with good
reason. The last few years have seen several innovations and advancements that have
previously been solely in the realm of science fiction slowly transform into reality.
Experts regard artificial intelligence as a factor of production, which has the potential to
introduce new sources of growth and change the way work is done across industries. For
instance, PWC article predicts that AI could potentially contribute $15.7 trillion to the global
economy by 2035. China and the United States are primed to benefit the most from the
coming AI boom, accounting for nearly 70% of the global impact.
 TYPES OF ARTIFICIAL INTELLIGENCE

Below are the various types of AI:

1. Purely Reactive
These machines do not have any memory or data to work with, specializing in just one field
of work. For example, in a chess game, the machine observes the moves and makes the best
possible decision to win.

2. Limited Memory
These machines collect previous data and continue adding it to their memory. They have
enough memory or experience to make proper decisions, but memory is minimal. For
example, this machine can suggest a restaurant based on the location data that has been
gathered.

3. Theory of Mind
This kind of AI can understand thoughts and emotions, as well as interact socially. However,
a machine based on this type is yet to be built.

4. Self-Aware
Self-aware machines are the future generation of these new technologies. They will be
intelligent, sentient, and conscious.
 Applications of AI

Artificial Intelligence has various applications in today's society. It is becoming essential for
today's time because it can solve complex problems with an efficient way in multiple
industries, such as Healthcare, entertainment, finance, education, etc. AI is making our daily
life more comfortable and fast.
Following are some sectors which have the application of Artificial Intelligence.

1. AI in Astronomy

• Artificial Intelligence can be very useful to solve complex universe problems. AI

technology can be helpful for understanding the universe such as how it works,
origin, etc.
2. AI in Healthcare

• In the last, five to ten years, AI becoming more advantageous for the healthcare
industry and going to have a significant impact on this industry.
• Healthcare Industries are applying AI to make a better and faster diagnosis than
humans. AI can help doctors with diagnoses and can inform when patients are
worsening so that medical help can reach to the patient before hospitalization.
3. AI in Gaming

• AI can be used for gaming purpose. The AI machines can play strategic games like
chess, where the machine needs to think of a large number of possible places.
4. AI in Finance

• AI and finance industries are the best matches for each other. The finance industry is
implementing automation, chatbot, adaptive intelligence, algorithm trading, and
machine learning into financial processes.
5. AI in Data Security

• The security of data is crucial for every company and cyber-attacks are growing very
rapidly in the digital world. AI can be used to make your data more safe and secure.
Some examples such as AEG bot, AI2 Platform, are used to determine software bug
and cyber-attacks in a better way.
6. AI in Social Media

• Social Media sites such as Facebook, Twitter, and Snapchat contain billions of user
profiles, which need to be stored and managed in a very efficient way. AI can
organize and manage massive amounts of data. AI can analyse lots of data to identify
the latest trends, hashtag, and requirement of different users.
7. AI in Travel & Transport

• AI is becoming highly demanding for travel industries. AI is capable of doing various

travel related works such as from making travel arrangement to suggesting the
hotels, flights, and best routes to the customers. Travel industries are using AI-
powered chatbots which can make human-like interaction with customers for better
and fast response
8. AI in Automotive Industry

• Some Automotive industries are using AI to provide virtual assistant to their user for
better performance. Such as Tesla has introduced TeslaBot, an intelligent virtual
assistant.
• Various Industries are currently working for developing self-driven cars which can
make your journey more safe and secure.
9. AI in Robotics:

• Artificial Intelligence has a remarkable role in Robotics. Usually, general robots are
programmed such that they can perform some repetitive task, but with the help of
AI, we can create intelligent robots which can perform tasks with their own
experiences without pre-programmed.
 • Humanoid Robots are best examples for AI in robotics, recently the intelligent
Humanoid robot named as Erica and Sophia has been developed which can talk and
behave like humans.

10. AI in E-commerce

• AI is providing a competitive edge to the e-commerce industry, and it is becoming

more demanding in the e-commerce business.
• AI is helping shoppers to discover associated products with recommended size,
colour, or even brand.
11. AI in education:

• AI can automate grading so that the tutor can have more time to teach. AI chatbot
can communicate with students as a teaching assistant.
• AI in the future can be work as a personal virtual tutor for students, which will be
accessible easily at any time and any place.

12. AI in Entertainment:

• AI is extensively used in entertainment platforms such as YouTube, Netflix and

Amazon Prime Video to provide personalised recommendations to users. By
analysing user preferences, browsing history, and behaviour, AI algorithms can
suggest movies, TV shows, music, books, and other content that users are likely to
enjoy.

13. AI in Agriculture:

• Agriculture is an area which requires various resources, labour, money, and time for
best result. Now a day's agriculture is becoming digital, and AI is emerging in this
field. Agriculture is applying AI as agriculture robotics, solid and crop monitoring,
predictive analysis. AI in agriculture can be very helpful for farmers.
 AI’s Impact on jobs

Artificial Intelligence (AI) is changing the job market, creating new types of jobs and
enhancing existing ones. As AI continues to develop and evolve, it is important to
understand how it is impacting the job market, the types of new jobs that are emerging, and
the potential impact on unemployment rates and the economy as a whole.
According to a report by McKinsey & Company, AI is expected to create 20-50 million new
jobs globally by 2030. These new jobs will be in a range of industries, including healthcare,
manufacturing, and finance. Some of the new job roles that are emerging as a result of AI
include:

• AI Trainers and Teachers: These are individuals who are responsible for training and
teaching AI systems. They ensure that AI algorithms are accurate and effective, and
they also develop new AI applications and systems.
• Data Analysts and Scientists: With the increase in data generated by AI systems,
there is a growing demand for individuals who can analyse and interpret this data.
Data analysts and scientists use AI tools to analyse data and identify patterns and
insights that can help businesses make better decisions.
• Human-Machine Teaming Managers: As AI becomes more integrated into the
workplace, there is a growing need for individuals who can manage the interaction
between humans and machines. Human-machine teaming managers ensure that AI
systems work effectively with human workers, enhancing productivity and efficiency.
• AI Ethics and Policy Specialists: As AI becomes more prevalent, there is a growing
need for individuals who can address the ethical and policy implications of AI. AI
ethics and policy specialists ensure that AI systems are developed and used in a
responsible and ethical manner.
AI is creating new job opportunities that require skills such as critical thinking, creativity, and
problem-solving. Artificial Intelligence is also enhancing existing jobs by improving accuracy
and precision in many tasks, such as quality control and data analysis. For example, in
healthcare, AI is being used to assist doctors and nurses with diagnosis and treatment
recommendations, improving patient outcomes and reducing the workload of healthcare
professionals.
The impact of AI on unemployment rates and the economy as a whole is a topic of debate.
While AI is creating new job opportunities, it is also leading to job displacement, particularly
in industries that rely heavily on routine and repetitive tasks.
According to a report by the World Economic Forum, by 2025, AI will have displaced 75
million jobs globally, but will have created 133 million new jobs. This means that there will
be a net gain of 58 million jobs globally, but there will still be significant job displacement in
certain industries.
The impact of AI on unemployment rates will also vary by region and industry. For example,
the manufacturing industry is likely to experience significant job displacement as a result of
AI, while the healthcare and education industries are expected to see significant job growth.
In addition to its impact on employment, AI also has the potential to impact the economy as
a whole. AI can lead to increased productivity and output, which can stimulate economic
growth. However, there are concerns about the potential for AI to widen the wealth gap, as
those with the skills and knowledge to work with AI may earn higher salaries than those
who do not have these skills.
 CHAPTER-2
LITERATURE REVIEW
 LITERATURE REVIEW

The integration of artificial intelligence (AI) in various industries has been increasing rapidly
in recent years. As a result, there is a growing concern about the potential impact of these
technologies on employment opportunities. According to a study by the McKinsey Global
Institute, up to 800 million jobs could be displaced by automation by 2030. Artificial
intelligence (AI) is rapidly changing the way businesses operate and is expected to have a
significant impact on the workforce.

This literature review aims to explore the current research on the impact of AI on
employment opportunities. It will examine the potential effects of these technologies on
different industries and occupations, as well as the potential for new job creation. The
purpose of this literature review is to examine the current research on the impact of AI on
employment opportunities. The review will explore the potential effects of AI on different
industries and occupations, as well as the potential for these technologies to create new
employment opportunities.
Frey and Osborne have studied the potential susceptibility of jobs to computerization and
found that low-skilled and routine jobs are the most susceptible to automation. They also
suggest that as AI and machine learning technologies continue to advance, they are also
expected to automate tasks that were previously thought to be the domain of highly skilled
workers. Frey and Osborne provide a comprehensive analysis of the potential impact of AI
and machine learning on job displacement by examining the susceptibility of different jobs
to automation. They found that low-skilled and routine jobs are the most susceptible to
automation and that the potential for job displacement is likely to be significant.
Autor has discussed the history and future of workplace automation and has highlighted
that the impact of technology on employment is not a new phenomenon. Throughout
history, technological advancements have led to the displacement of certain jobs while
creating new employment opportunities in other areas. However, the rapid pace of
technological advancement and the increasing capabilities of AI and machine learning raise
concerns that the impact on employment may be more severe than in the past. Autor
examines the historical relationship between technological advancement and employment,
highlighting that while technology has led to the displacement of certain jobs, it has also
created new employment opportunities in other areas.
Acemoglu and Restrepo have looked into the evidence from US labour markets and found
that robots and automation lead to job displacement, lower wages and increasing income
inequality. Acemoglu and Restrepo study the impact of industrial robots on US labour
markets, finding that the introduction of robots leads to significant job displacement and a
decline in wages for workers in affected industries. They also find that the negative impact
of robots on employment is concentrated among low-skilled workers.
McKinsey Global Institute has also studied the future of work and found that AI and
machine learning can also have positive impacts on employment, such as creating new job
opportunities and increasing productivity. McKinsey Global Institute examines the potential
impact of AI and machine learning on employment opportunities, highlighting that these
technologies have the potential to create new job opportunities and increase productivity.
However, they also note that the impact of AI and machine learning on employment will
depend on factors such as the speed of technological advancement and the ability of
workers to adapt to new technologies.
Artificial intelligence (AI) could replace the equivalent of 300 million full-time jobs, a report
by investment bank Goldman Sachs says. It could replace a quarter of work tasks in the US
and Europe but may also mean new jobs and a productivity boom. And it could eventually
increase the total annual value of goods and services produced globally by 7%. The report
also predicts two-thirds of jobs in the U.S. and Europe “are exposed to some degree of AI
automation,” and around a quarter of all jobs could be performed by AI entirely.
According to J. Badet's findings, the advantages brought about by automation on
employment, highlighting the emergence of new and intricate tasks in addition to job
displacement. The positive aspect of automation lies in the creation of these new tasks,
demanding advanced skills, thus underscoring the importance of prioritizing education and
training to effectively adapt to this evolving employment landscape. The extent of job
displacement due to automation varies across countries, influenced by factors such as
technology investment, economic structure, and educational attainment, posing a higher
risk in countries with substantial automation.
The World Economic Forum has estimated that artificial intelligence will replace some 85
million jobs by 2025. Freethink says that 65% of retail jobs could be automated by that year,
saying that this is largely due to technological advancements, rising costs and wages, tight
labor markets, and reduced consumer spending.
According to International Labour Organisation AI could also affect income and wealth
inequality within countries. We may see polarization within income brackets, with workers
who can harness AI seeing an increase in their productivity and wages—and those who
cannot falling behind. Research shows that AI can help less experienced workers enhance
their productivity more quickly. Younger workers may find it easier to exploit opportunities,
while older workers could struggle to adapt.
Jaiswal, A., Arun, C. J., & Varma, A. Proponents of artificial intelligence anticipate a scenario
in which intelligent machines do regular human tasks, freeing individuals up to pursue
creative endeavours. While broad concern exists. Despite job losses, organizational think
tanks advocate for the synergistic convergence of human-machine competencies. The
report contends that the introduction and acceptance of AI needs employee upskilling
through utilizing dynamic skill, neo human capital, and AI job replacement theories. In this
study, the researchers interviewed 20 experienced professionals from global firms in India's
information technology sector to determine the fundamental skills deemed critical for
employee upskilling. Five critical abilities for employee upskilling were revealed using Gioia's
qualitative research technique: data analysis, digital, complex cognition, decision making,
and continuous learning.
Koperniak, S. (2020, December 17). According to this analysis, recent predictions about A I
causing mass unemployment are unlikely to be realized. Instead, it is expected that, like
with earlier labour- saving technologies, AI will enable new industries to arise, creating more
new employment than it will eliminate. Furthermore, even while AI is quickly advancing, it is
believed that it will take many decades away from the day when computers will have
complete, human-level artificial intelligence. For the foreseeable future, the most exciting
applications of AI will not involve computers replacing people, but rather people and
computers collaborating as "super-minds" to do cognitive and physical activities that could
not previously be performed.

Overall, these sources suggest that while AI and machine learning have the potential to
automate many tasks and lead to job displacement, they can also create new employment
opportunities and improve productivity. However, it's important to note that the impact of
these technologies on employment may vary by industry and occupation, and that policies
and programs may be needed to mitigate the negative effects and to leverage the positive
effects of these technologies on the workforce. Overall, the sources suggest that the
integration of AI and machine learning is likely to lead to significant job displacement,
particularly for low-skilled and routine jobs. However, it is also suggested that these
technologies have the potential to create new employment opportunities and increase
productivity. The potential impact on employment opportunities also depends on factors
such as the speed of technological advancement and the ability of workers to adapt to new
technologies.
 OBJECTIVES

1) To know the impact of technological advancements on employment opportunity.

2)
 CHAPTER-3
RESEARCH METHODOLOGY
 Research Methodology
The process is used to collect information and data for the purpose of finding out the impact
of AI on employment opportunities. To know the impact of AI on employment the data is
collected through structured questionnaire. The questionnaire consists, dichotomous
question, multiple choice and open ended questions.

• NEED OF THE STUDY

1. To understand the changes and preparing the workforce in rapidly advancing
era of AI.
2. To understand AI’s effect on different job categories for maintaining balanced
job market dynamics.
3. To understand the impact of AI on workforce to plan for reskilling programs
to keep updated the employees with technological advancements.

• SCOPE OF THE STUDY

• RESEARCH DESIGN
The study was based on survey method. The aim of the study is to find satisfaction levels of
employees.

• SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population.
Convenience sampling method used in selected samples.

• PERIOD OF STUDY
This study on employee satisfaction was conducted during the period of Twenty One Days.

• SAMPLE SIZE
Sample size refers to the number of participants or observations included in a study. In
this survey a sample of 75 respondents has been used.

• DATA COLLECTION
The data collected for the study consists of both primary and secondary data.

• PRIMARY DATA
Primary data is a type of data that is collected by researchers directly from main sources
through interviews, surveys, experiments, etc. Primary data are usually collected from the
source where the data originally originates from and are regarded as the best kind of data in
research. For this study the data has been collected through structured questionnaire which
consists of different types of questions.

• SECONDARY DATA
Secondary data is the data that has already been collected through primary sources and
made readily available for researchers to use for their own research. It is a type of data that
has already been collected in the past. Secondary data can be collected through books,
magazines, newspaper, Internet and other resources. Information about the impact of AI on
employment has been collected through internet, newspaper articles, magazines, research
papers etc.

• TOOLS TECHNIQUES
In this study percentage method has been used for the analysis and interpretation of
findings.

• PERCENTAGE METHOD
Percentage method in research refers to the proportion or rate of a specific variable
within a study. In the contexts provided, percentages are utilized to quantify various
outcomes.

No. of respondent to be measured * 100

Total no. of respondent

P= Q * 100
R

• P- Percentage
• Q-No. Of respondents to measure
• R-Total Respondents

• Limitations of the study

While this research aims to provide a comprehensive analysis of the impact of Artificial
Intelligence on employment opportunities yet there are several limitations. These are:
1. The data may not be more accurate as the respondents would have shown less
interest.
2. The study focuses on specific sectors more prominently affected by AI such as
manufacturing, healthcare, retail, education etc. Others sectors might face different
impacts which are not fully explored.
3. AI technology rapidly evolves rapidly which can quickly outdate the findings of the
study in near future.
4. AI is a relatively recent phenomenon which leads in limited data on its impact on
employment.
 CHAPTER – 4
DATA ANALYSIS AND INTREPRETATION
DATA ANALYSIS AND INTERPRETATION