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ABSTRACT The rise of large language models (LLMs) is transforming the trajectory of traditional rule‐based automation, while their global impact on the labor market remains largely unexplored. To assess this transition, we develop a novel bottom‐up framework linking detailed task data to occupational structures across a broad spectrum of economies. Our findings reveal that LLM‐driven automation disproportionately impacts roles centered on information processing, administration, and managerial coordination compared to those in physical or manual domains. At the sectoral level, this impact translates into higher exposure for knowledge‐intensive sectors like finance, education, and professional services, while sectors like agriculture and manufacturing remain more insulated. Because the industrial structure strongly determines a nation's vulnerability, economies reliant on administrative and clerical activities are facing greater exposure. Critically, potential productivity gains from this exposure are concentrated in areas contributing significantly to economic value rather than employment, highlighting a tension between efficiency and equitable labor outcomes. We argue that proactive policies, focusing on fair transitions, skill adaptation, and strategic industrial development, are crucial to avoid this technological shift undermining the sustainable development goals.
Li et al. (Tue,) studied this question.