The rapid adoption of artificial intelligence (AI) is fundamentally transforming labor markets worldwide, presenting both opportunities and challenges. This study examines the impact of AI adoption on Cambodia′s labor market, focusing on job displacement, new employment opportunities, and evolving skill requirements for workers. To explore the dynamics between AI adoption, job displacement, and changing skill demands, this study employed PLS‐SEM analysis on data from 351 respondents, revealing significant workforce reshaping. However, AI has also fostered employment growth in emerging industries. Findings indicate that AI‐driven job displacement disproportionately affects low‐skilled workers, underscoring the need for targeted policy interventions. This study further establishes that job displacement intensifies the demand for new skills, highlighting the need for reskilling and upskilling initiatives. In addition, investments in education and training are crucial for mitigating AI‐induced employment disruptions and enhancing workforce adaptability. These findings contribute to the literature by providing empirical insights from a developing economy, where unique socioeconomic and institutional factors shape the impact of AI. The results have significant implications for policymakers, educators, and business leaders as they formulate strategies to navigate the future of work in the AI era.
Ly et al. (Thu,) studied this question.