ARTIFICIAL INTELLIGENCE AND THE PRODUCTIVITY PARADOX: MODELING STRUCTURAL TRANSFORMATION AND LABOR MARKET POLARIZATION ACROSS ECONOMIC GROUPS
MYKHAYLO VIDYAKIN, TETIANA MELNYK, OKSANA NAZARCHUK, NATALIIA POCHERNINA, OLEKSANDR AKIMOV · Zenodo (CERN European Organization for Nuclear Research) · 31 May 2026
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Where this sits in the debate
- Will AI actually boost productivity and growth? · its finding supports the claim (why studies differ)
- Will AI destroy more jobs than it creates?
- Will AI widen inequality?
Direction of the finding as read from the abstract by an AI model (AI-written).
Key takeaway AI-written
Using panel data for 2018-2024 across country groups, the study estimates that a 1% rise in automation is associated with a 0.44% rise in labor productivity and a 1% rise in education spending with a 0.31% rise. It links AI adoption to structural change and labor-market polarization across developed and transition economies.
Abstract
The active introduction of artificial intelligence into the work process causes significant changes in the labor market, accounting and management control systems, as well as in economic growth models. With the advent of new information technologies, it became obvious that national economies need to increase labor productivity through the process of digitalization. This requires scientific substantiation of energy-efficient technologies that affect the use of labor resources in terms of their effectiveness. The purpose of this research was to study the impact of artificial intelligence technologies on labor productivity and changes in the employment structure, especially in the context of the digital economy. The methodology was based on a systematic, logical-structural, comparative and econometric analysis of panel data for the period from 2018 to 2024. The analysis revealed that the introduction of automation, investments in human capital development and spending on scientific research and development have a statistically significant positive effect on labor productivity growth. An increase in the level of automation by 1% leads to a 0.44% increase in productivity, while an increase in spending on education provides an increase of 0.31%. In 2024, the average gross domestic product per capita in developed countries will be $ 133.2 thousand. In countries with economies in transition, this figure is $57.300, while in developing countries it is only $34.000. The digital integration index in developed countries is 0.85, while in developing countries it is only 0.52. The level of accounting automation in economically developed countries is 74%, while in less developed regions this figure is only 29%. The practical value of the results obtained lies in the formation of policies that contribute to the growth of labor productivity, the development of human resources and the improvement of management structures in the conditions of digital transformation.
About this publication
Preprint. A preprint — posted publicly before or without journal peer review; findings may still be revised.
- Published
- 2026 (5 months ago)
- Citations
- 0 (OpenAlex)
0 citations recorded by OpenAlex — too few 2026 papers in this collection for a fair comparison.
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