As the second largest economy in the world, China is at a critical stage of AI technology application. This study aims to explore the impact of AI on China's labour market and economic growth using a mixture of computational techniques and methodologies: correlation and regression analysis, production functions theory, linear programming, trends analysis, System Dynamics simulation concept. The main results show that AI technology diffusion is strongly correlated with the main labour market indicators and plays an important role in alleviating the impact of aging population and labour force shortages on economic growth on China. Two different macro production functions, which include robot installation as a separate parameter are built to be used in a System Dynamics model for comparative cause-and-effect simulation forecast of
Bitkova et al. (Sun,) studied this question.