THE IMPACT OF ARTIFICIAL INTELLIGENCE ON THE LABOR MARKET ECONOMY IN IRAQ

Abstract

This research aims to examine and analyze the impact of Artificial Intelligence (AI) technologies on the economics of the labor market in Iraq. It identifies the sectors most vulnerable to automation risks while exploring the opportunities created by AI to enhance the Iraqi labor market and generate new job opportunities. Employing a descriptive, analytical, and comparative methodology, the study relies on secondary data retrieved from the World Bank, the International Labour Organization (ILO), and the Iraqi Central Statistical Organization (CSO) for the period 2014–2023. Additionally, a multiple regression model is utilized to measure the impact of several independent variables on the employment rate. The findings reveal that the public sector (accounting for 38.2% of the workforce), along with the banking and transportation sectors, are the most exposed to automation risks, with vulnerability rates exceeding 60%. Furthermore, the regression model demonstrates that the AI Adoption Index is significantly and negatively correlated with the employment rate (β = -0.412, p<0.01) in the absence of reskilling policies, whereas the level of education and digital skills serves as a statistically significant protective factor (β = 0.241, p<0.01). The study concludes with the necessity of adopting a comprehensive national strategy that integrates digital infrastructure development, educational system reform, and active labor market policies to transform this technological challenge into a development opportunity.