EDITORIAL: Brace for AI’s labor disruptionUS President Donald Trump last week stole the spotlight during the World Economic Forum in Davos, Switzerland, before artificial intelligence (AI) took center stage. Just as people’s responses to any developing technology in the past, there are mixed views on the impact of AI on the labor market. The emergence of new technologies generally has three effects on labor demand: displacement, productivity and reinstatement, academic studies have shown. The displacement effect means that the emergence of new technologies would replace the existing workforce, reducing labor demand. According to the productivity effect, new technologies would increase manufacturers’ productivity and profit, prompting them to further expand their operations and thus increasing labor demand.

Source: Taipei Times January 26, 2026 17:50 UTC