
The rapid adoption of AI in the workplace has raised concerns about job loss. This column uses data covering all AI-related commercial software registered with Brazil’s National Institute of Industrial Property to show how AI is affecting the labour market in two distinct ways. In the factory, AI increases employment of low-skilled workers by making machines more productive and easier to operate. In the office, however, it automates tasks previously done by workers. Because the effect on production workers dominates, AI increases employment and decreases inequality.