The Rising Artificial Intelligence Revolution, Its Impact on Employment and Productivity

Traditional sectors are being replaced by digitalisation in most areas of economic life. Artificial intelligence (AI) technologies are expected to leave their mark on the future. In the study, the effect of AI on employment and productivity is carried out using panel data for the 2002-2021 period for the ten countries that use the relevant technologies the most, and the Vector Error Correction Model, cointegration, Granger and Toda-Yamamoto causality tests. As a result of the analysis, a long-term positive relationship is determined between patent applications, R&D expenditures, high-tech product exports, and employment and productivity representing AI technologies, and according to the TodaYamamoto causality test results, there is a relationship between proxy variables representing artificial intelligence technologies and employment and productivity. It is concluded that there is" a multidirectional causality relationship.