The impact of AI exposure on labour market outcomes and well-being : evidence from Australia

This paper examines the impact of artificial intelligence (AI) exposure on labour market outcomes and well-being in Australia. Using longitudinal microdata from the Household, Income and Labour Dynamics in Australia (HILDA) survey, we examine the impact of AI exposure on employment and job satisfaction outcomes from 2002 to 2022. We find that AI exposure led to a reduction in usual and desired work hours and an increase in hourly wages. AI exposed individuals also experienced lower satisfaction with job security and overall job satisfaction, but increased perceived autonomy. These adverse well-being effects are most pronounced among casual workers, whereas AI exposure appears to increase employment and wages for women and work hours for older workers. No significant effects are found on self-reported health. Our findings are robust to alternative AI exposure definitions, sample restrictions, and controls for pandemic-related labour shocks.