This paper investigates the impact of artificial intelligence (AI), specifically industrial robots, on employment in China using panel data from 30 provinces between 2006 and 2020. Employing a two-way fixed-effect model and two-stage least squares, the study finds that AI adoption has increased jobs overall, contradicting the traditional notion of AI-driven job displacement. This positive effect is heterogeneous, benefiting women and workers in labor-intensive industries. The study highlights the role of virtual agglomeration, a digital-era evolution of industrial agglomeration, as a crucial channel for AI-driven job creation. Policy implications emphasize improving social security, accelerating high-end robot development, and reforming education and training systems.

Yang Shen, Xiuwu Zhang