(Yicai) Oct. 30 -- The effect of artificial intelligence on employment has not yet been reflected in global macroeconomic data, but some signs are emerging in recruitment figures and micro aspects, making this brief and quiet period of AI influence a crucial window of opportunity to formulate response policies in advance, according to a member of the Chinese Academy of Social Sciences.

The productivity improvement AI brings is unbalanced, with the technology's application uneven across industries, companies, and different processes and labor task chains, Cai Fang said at the recent Bund Summit. AI-driven labor productivity gains will follow a J-curve, he said, citing relevant industry research.

Because labor substitution may occur before productivity improves, it is necessary to prepare in advance to address employment issues, he pointed out.

Technology alone cannot solve AI's negative impact on society and the economy, especially employment, he said, adding that government intervention, financial participation, and other coordinated measures must be taken to address the issue of AI for Good. "At least for emerging markets, we need government policy intervention and institutional development more than ever before."

Cai put forward policy suggestions from four aspects. First, promote equal rights in AI and narrow the technological gap between different groups, with solving the structural employment contradiction between young and older workers as the top priority. The former's entry-level skills may depreciate due to AI applications, while the latter may face a greater technological gap.

Second, guide coordination between AI and social, economic, and industrial development, while enabling AI to develop to better serve workers through guidance, incentives, and regulations. "From an employment perspective, we need to make AI an intensifier of workers' abilities, rather than a destroyer of their roles," Cai stressed.

Third, cultivate sectors with highly elastic demand but relatively low labor productivity, such as the service industry, to create space for job creation. Fourth, promote adapting the labor market system and social security system to new forms of employment.

Government policy intervention and institutional reform are needed to handle the employment problems brought by AI, Cai said. Resolving structural employment contradictions and responding to future impacts of AI should be included in the "investing in human capital" strategy, he noted.

Editor: Martin Kadiev