Artificial Intelligence and Employment Outcomes in an Emerging Economy: The Moderating Role of Digital Readiness

The rapid integration of Artificial Intelligence (AI) is transforming labour markets globally, yet empirical evidence from developing economies remains limited. This study investigates how AI integration influences employment outcomes in Lagos State, Nigeria, and examines whether digital readiness moderates this relationship. A convergent-parallel mixed-methods design was employed. A quantitative survey was administered to 400 professionals across four key sectors (financial services, logistics, retail/trade, and manufacturing), complemented by 15 semi-structured interviews with HR managers and technology executives. Data was analyzed using descriptive statistics, multiple regression, and thematic analysis. Results indicate that AI integration significantly predicts both job creation (β = 0.221, p < .001) and job displacement (β = 0.314, p < .001). Digital readiness significantly moderates these relationships, amplifying job creation (ΔR² = 0.034, p = .004) and attenuating displacement in high-readiness contexts. Qualitative findings corroborate that AI adoption primarily drives operational restructuring rather than headcount reduction, with skill deficits rather than technology alone driving displacement perceptions. The study concludes that AI’s employment impact in emerging economies is contingent on organizational and infrastructural preparedness. Recommendations emphasize sector-specific upskilling, infrastructure investment, and targeted policy interventions to ensure inclusive labour market transitions