AI destroys jobs but also creates employment

Although greater use of artificial intelligence (AI) in industrial and business applications will, while increasing productivity and economic growth, lead to overall loss of employment and jobs in the long term is still being debated, the issue is of great importance to China.

The GDP of the world's second largest economy is expected to reach $18.5 trillion this year, and more than 740 million people had been employed by the end of 2023. With its current population of over 1.4 billion, the country is already experiencing a decline in its population — China's population is expected to decline to around 1.3 billion by 2050 due mainly to a decrease in the country's fertility rate, which has fallen below the replacement rate. This means fewer newborns than deaths.

Yet despite the decline in its population in the long run, China will still have a very large workforce for years to come. The country needs to create millions of jobs every year to absorb its large workforce. This is where the impact of AI becomes crucial.