Author(s) :

Aarit Das.

Volume/Issue :

Abstract :

The adoption of artificial intelligence (AI) has a profound impact not only on the broader economy but also on the unemployment rate. In this study, we aimed to better understand the effects of AI on the unemployment rate by collecting the unemployment data from the Bureau of Labor Statistics Data (BLS). This data is considered reliable since the government collects, updates and consolidates the data from a large population in the US. The collected unemployment data was then correlated with different sectors of the economy. Each sector of the economy was represented by its corresponding Vanguard exchange-traded fund (ETF). Our analysis showed that as a result of the advent of AI, the unemployment rate correlated the most with the technology sector. This result was in concurrence with similar upheavals of the past. A major event, whether technological or non-technological, initially caused the unemployment rate to increase. Gradually, as society absorbed the impact of the event, the unemployment rate returned to previous levels. During this cooling off period, the new innovations steadily transitioned into critical components of daily life upon which a society became dependent leading to the creation of new kinds of jobs.