The dual mandate of ai Adoption: Navigating Labor Market Transformation and Organizational change for Equitable Growth

Artificial Intelligence (AI) is rapidly transforming the global labour market by simultaneously displacing jobs involving routine tasks and creating new, high-skill roles, necessitating urgent policy and retraining responses. This dual impact introduces significant challenges, notably the intensification of socioeconomic inequality and labour market polarization. Utilizing a systematic literature review approach on secondary data, this study explores the dynamics of this transformation, focusing on which sectors are most vulnerable to displacement and identifying the specialized technical and human-centered competencies now demanded by an AI-driven economy. Analysis reveals that mitigating adverse effects requires strong leadership and effective change management to address human factors, such as employee resistance and widening skills gaps, while proactively ensuring that the growth fueled by AI is shared equitably across the workforce. This paper contributes to the ongoing discourse by outlining integrated strategies for reskilling, policy intervention, and organizational adaptation crucial for sustainable and inclusive growth.