THE IMPACT OF ARTIFICIAL INTELLIGENCE AND REGULATORY STRATEGIES ON THE ECONOMICS: LEARNING FROM INDONESIA, CHINA, AND EUROPE
Abstract
This study examines the economic impact of artificial intelligence (AI) on labor markets and regulatory strategies in Indonesia, China, and Europe. Through a literature review, it assesses how AI adoption influences productivity, job creation, and displacement in these regions. Indonesia faces challenges like infrastructural and educational gaps, though targeted investments and reskilling could boost growth and mitigate job losses. Meanwhile, China and Europe benefit from AI-driven productivity but also confront labor market disruptions, requiring strong policy responses. Indonesia focuses on foundational AI integration, while China pursues aggressive technological advancement and regulation. Europe prioritizes ethical AI use, data protection, and workforce resilience through education and retraining. The study highlights the importance of region-specific regulatory frameworks and calls for continued international collaboration to address global AI-related labor issues. Cross-regional knowledge exchange is crucial for managing labor market transitions and ensuring AI's benefits are widely shared.
Keywords: Artificial Intelligence (AI); Labor Market Disruption; Regulatory Frameworks
Abstrak
Studi ini meneliti dampak ekonomi kecerdasan buatan (AI) terhadap pasar tenaga kerja dan strategi regulasi di Indonesia, Tiongkok, dan Eropa. Melalui tinjauan literatur, studi ini mengevaluasi bagaimana adopsi AI memengaruhi produktivitas, penciptaan lapangan kerja, dan pengurangan tenaga kerja di wilayah-wilayah tersebut. Indonesia menghadapi tantangan seperti kesenjangan infrastruktur dan pendidikan, meskipun investasi yang ditargetkan dan peningkatan keterampilan dapat mendorong pertumbuhan dan mengurangi kehilangan pekerjaan. Sementara itu, Tiongkok dan Eropa memperoleh manfaat dari produktivitas yang didorong oleh AI, tetapi juga menghadapi gangguan pasar tenaga kerja, yang membutuhkan respons kebijakan yang kuat. Indonesia berfokus pada integrasi AI dasar, sedangkan Tiongkok mengejar kemajuan teknologi dan regulasi secara agresif. Eropa memprioritaskan penggunaan AI yang etis, perlindungan data, serta ketahanan tenaga kerja melalui pendidikan dan pelatihan ulang. Studi ini menekankan pentingnya kerangka regulasi spesifik untuk setiap wilayah dan menyerukan kerjasama internasional yang berkelanjutan untuk mengatasi isu-isu tenaga kerja terkait AI secara global. Pertukaran pengetahuan lintas wilayah sangat penting untuk mengelola transisi pasar tenaga kerja dan memastikan manfaat AI dapat dinikmati secara luas.
Kata Kunci: Kecerdasan Buatan; Gangguan Pasar Tenaga Kerja; Kerangka Regulasi
Downloads
References
Adhikari, P. (2024). Exploring the Nexus between Artificial Intelligence and Job Displacement : A Literature Review. Journal of National Development, 37(1), 1–13. https://doi.org/10.62047/JND.2024.06.30.1
Annoni, A., Benczur, P., Bertoldi, P., Delipetrev, B., De Prato, G., Feijoo, C., ... & Junklewitz, H. (2018). Artificial intelligence: A European perspective. Publications Office. https://doi.org/10.2760/11251
Aryanto, E., Mabruk, H., & Narendroputro, W. (2023). Artificial Intelligence Implementation Strategy to Make It Happen Smart Government Indonesia Gold 2045. International Journal of Science and Society, 5(5), 172–197. https://doi.org/10.54783/ijsoc.v5i5.877
Augustin, R., Nina, H., & Widowati. (2023). The Implementation of Artificial Intelligence in Indonesia’s Public Service: Challenges and Government Strategies. https://doi.org/10.46254/au01.20220537
Bakovic, Tonci R.; Biallas, Margarete O.; Lopez Conde, Maria Francisca; Cook, Peter A.; Diwan, Prajakta; Houngbonon, Georges Vivien; Kaleem, Hassan; Makala, Baloko; Manchanda, Sumit; Menes, Rebecca Ann; Mockel, Peter; Mou, Xiaomin; Myers, Gordon I.; Nejkov, Kiril; Niforos, Marina; O'Neill, Felicity Maree; Rana, Ahmed Nauraiz; Roy, Friedemann; Saberi, Ommid; Schlorke, Sabine; Sonneborn, William Charles; Strusani, Davide; Twinn, Christopher Ian. (2021). Artificial Intelligence in Emerging Markets: Opportunities, Trends, and Emerging Business Models (English). Washington, D.C.: World Bank Group. http://documents.worldbank.org/curated/en/993711613713486658/Artificial-Intelligence-in-Emerging-Markets-Opportunities-Trends-and-Emerging-Business-Models
Bera, S., Pillai, S., & Pathak, D. P. (2024). Navigating the AI Impact: Job Markets and Evolving Skillsets. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4851647
Cabral, T. S. (2018). Robotics and AI in the European Union: opportunities and challenges. UNIO – EU Law Journal, 4(2). https://doi.org/10.21814/unio.4.2.14
Chhatre, R., & Singh, S. (2024). Policy and Regulatory Frameworks for Artificial Intelligence. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4848705
Comunale, M. (2024). The Economic Impacts and the Regulation of AI: A Review of the Academic Literature and Policy Actions. IMF Working Papers, 2024(065), 1. https://doi.org/10.5089/9798400268588.001
Corrocher, N., Moschella, D., Staccioli, J., & Vivarelli, M. (2023). Innovation and the Labor Market: Theory, Evidence and Challenges. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4467960
Dixon, R. B. L. (2023). A principled governance for emerging AI regimes: lessons from China, the European Union, and the United States. AI and Ethics, 3(3). https://doi.org/10.1007/s43681-022-00205-0
Everett, C., Blasi, D. E., & Roberts, S. G. (2015). Climate, vocal folds, and tonal languages: Connecting the physiological and geographic dots. Proceedings of the National Academy of Sciences, 112(5), 1322–1327. https://doi.org/10.1073/pnas.1417413112
Faishal, Mohd., Saju Mathew, Kelengol Neikha, Khriemenuo Pusa, & Tonoli Zhimomi. (2023). The future of work: AI, automation, and the changing dynamics of developed economies. World Journal of Advanced Research and Reviews, 18(3). https://doi.org/10.30574/wjarr.2023.18.3.1086
Felten, E. W., Raj, M., & Seamans, R. (2019). The Variable Impact of Artificial Intelligence on Labor: The Role of Complementary Skills and Technologies. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3368605
Fenwick, M., Vermeulen, E. P. M., & Corrales, M. (2018). Business and Regulatory Responses to Artificial Intelligence: Dynamic Regulation, Innovation Ecosystems and the Strategic Management of Disruptive Technology (pp. 81–103). https://doi.org/10.1007/978-981-13-2874-9_4
Furman, J., & Seamans, R. (2019). AI and the economy. Innovation Policy and the Economy, 19(1). https://doi.org/10.1086/699936
Georgieff, A., & Hyee, R. (2022). Artificial Intelligence and Employment: New Cross-Country Evidence. Frontiers in Artificial Intelligence, 5. https://doi.org/10.3389/frai.2022.832736
Glebova, E., Madsen, D. Ø., Mihaľová, P., Géczi, G., Mittelman, A., & Jorgič, B. (2024). Artificial intelligence development and dissemination impact on the sports industry labor market. Frontiers in Sports and Active Living, 6. https://doi.org/10.3389/fspor.2024.1363892
Goode, K., & Kim, H. M. (2021). Indonesia’s AI Promise in Perspective. https://doi.org/10.51593/2021CA001
Goolsbee, A. (2018). Public Policy in an AI Economy. https://doi.org/10.3386/w24653
Hapsari, I. M., Yu, S., Pape, U. J., & Mansour, W. (2023). Informality in Indonesia: Levels, Trends, and Features. The World Bank. https://doi.org/10.1596/1813-9450-10586
Huang, H. (2024). Artificial Intelligence and Productivity Improvement in the Digital Economy. Finance & Economics, 1(5). https://doi.org/10.61173/2bq63573
Jan, Z., Ahamed, F., Mayer, W., Patel, N., Grossmann, G., Stumptner, M., & Kuusk, A. (2023). Artificial intelligence for industry 4.0: Systematic review of applications, challenges, and opportunities. Expert Systems with Applications, 216. https://doi.org/10.1016/j.eswa.2022.119456
Kao, W. (2024). Impaction of Artificial Intelligence on the Labor Market. Advances in Economics, Management and Political Sciences, 84(1), 24–29. https://doi.org/10.54254/2754-1169/84/20240772
Korinek, A., & Stiglitz, J. (2021). Artificial Intelligence, Globalization, and Strategies for Economic Development. https://doi.org/10.3386/w28453
Kullmann, M., & Cefaliello, A. (2021). The Draft Artificial Intelligence Act (AI Act): Offering False Security to Undermine Fundamental Workers’ Rights. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3993100
Luise, G. (2024). The European Path to Artificial Intelligence: The Innovation of the 21st Century. Perspective Politice, 17(0). https://doi.org/10.25019/perspol/24.17.0.10
Maghfirah, P., & Eni, Y. (2024). The Impact Of Artificial Intelligence (Ai) Adoption On The Productivity Of Small And Medium Enterprises (Smes) Industries In Indonesia: High Cost, Lack Of Knowledge, And Inadequate Infrastructure As Mediation Variables. International Journal of Business Management and Economic Review, 07(03), 128–145. https://doi.org/10.35409/IJBMER.2024.3584
Morgan, D. (2023). Anticipatory regulatory instruments for AI systems: A comparative study of regulatory sandbox schemes. AIES 2023 - Proceedings of the 2023 AAAI/ACM Conference on AI, Ethics, and Society. https://doi.org/10.1145/3600211.3604732
Mou, X. (2019). Artificial intelligence: Investment trends and selected industry uses. International Finance Corporation, 8(2), 311-320.
Olaniyi, O. O., Ezeugwa, F. A., Okatta, C. G., Arigbabu, A. S., & Joeaneke, P. C. (2024). Dynamics of the Digital Workforce: Assessing the Interplay and Impact of AI, Automation, and Employment Policies. Archives of Current Research International, 24(5), 124–139. https://doi.org/10.9734/acri/2024/v24i5690
Paslar, A. (2024). The Role of Artificial Intelligence and Automation in Shaping Labor Markets. Development through Research and Innovation - 2023, 137–151. https://doi.org/10.53486/dri2023.10
Poba-Nzaou, P., Galani, M., Uwizeyemungu, S., & Ceric, A. (2021). The impacts of artificial intelligence (AI) on jobs: an industry perspective. Strategic HR Review, 20(2). https://doi.org/10.1108/shr-01-2021-0003
Roberts, H., Cowls, J., Morley, J., Taddeo, M., Wang, V., & Floridi, L. (2020). The Chinese Approach to Artificial Intelligence: An Analysis of Policy and Regulation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3469783
Roberts, H., Cowls, J., Morley, J., Taddeo, M., Wang, V., & Floridi, L. (2021). The Chinese approach to artificial intelligence: an analysis of policy, ethics, and regulation. AI & SOCIETY, 36(1), 59–77. https://doi.org/10.1007/s00146-020-00992-2
Samuel-Okon, A. D., & Abejide, O. O. (2024). Bridging the Digital Divide: Exploring the Role of Artificial Intelligence and Automation in Enhancing Connectivity in Developing Nations. Journal of Engineering Research and Reports, 26(6), 165–177. https://doi.org/10.9734/jerr/2024/v26i61170
Santoso, I. B., Triyunarti, W., Farhani, A., Azizah, F. N., & Suherman, A. M. (2024). Legal Regulations for Anticipating Artificial Intelligence-Based Workers through Institutional Transformation of Job Training and the Human Resources Revolution. Devotion : Journal of Research and Community Service, 5(6), 672–681. https://doi.org/10.59188/devotion.v5i6.743
Silitonga, F., & Isbah, M. F. (2023). Artificial Intelligence and the Future of Work in the Indonesian Public Sector. Jurnal Ilmu Sosial Dan Humaniora, 12(2), 296–308. https://doi.org/10.23887/jish.v12i2.62297
Somjai, S., Jermsittiparsert, K., & Chankoson, T. (2020). Determining the initial and subsequent impact of artificial intelligence adoption on economy: a macroeconomic survey from ASEAN. Journal of Intelligent & Fuzzy Systems, 39(4), 5459–5474. https://doi.org/10.3233/JIFS-189029
Soueidan, M. H., & Shoghari, R. (2024). The Impact of Artificial Intelligence on Job Loss: Risks for Governments. Technium Social Sciences Journal, 57, 206–223. https://doi.org/10.47577/tssj.v57i1.10917
Strusani, D., & Houngbonon, G. V. (2019). The Role of Artificial Intelligence in Supporting Development in Emerging Markets. International Finance Corporation, Washington, DC. https://doi.org/10.1596/32365
Tambunan, T. T. H. (2020). Economic Growth, Labor Market Segmentation, and Labor Productivity. In Wealth Creation and Poverty Reduction (pp. 225–249). IGI Global. https://doi.org/10.4018/978-1-7998-1207-4.ch013
Trabelsi, M. A. (2024). The impact of artificial intelligence on economic development. Journal of Electronic Business & Digital Economics, 3(2), 142–155. https://doi.org/10.1108/JEBDE-10-2023-0022
Tsai, C. H., Lin, C. F., & Liu, H. W. (2020). The diffusion of the sandbox approach to disruptive innovation and its limitations. In Cornell International Law Journal (Vol. 53, Issue 2). https://doi.org/10.2139/ssrn.3487175
Tsutsulaeva, S. (2023). Use of labor resources of specially displaced Chechens in the first years of deportation. E3S Web of Conferences, 451. https://doi.org/10.1051/e3sconf/202345105010
Walter, Y. (2024). Managing the race to the moon: Global policy and governance in Artificial Intelligence regulation—A contemporary overview and an analysis of socioeconomic consequences. Discover Artificial Intelligence, 4(1), 14. https://doi.org/10.1007/s44163-024-00109-4
Wang, J. (2023). Navigating the AI Revolution: Job Replacements and New Opportunities in the Labor Market. Advances in Economics, Management and Political Sciences, 46(1), 10–15. https://doi.org/10.54254/2754-1169/46/20230309
Yusriadi, Y., Rusnaedi, Siregar, N. A., Megawati, S., & Sakkir, G. (2023). Implementation of artificial intelligence in Indonesia. International Journal of Data and Network Science, 7(1). https://doi.org/10.5267/j.ijdns.2022.10.005
Zetzsche, D. A., Buckley, R. P., Arner, D. W., & Barberis, J. N. (2017). Regulating a Revolution: From Regulatory Sandboxes to Smart Regulation. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3018534
Zhou, G., Chu, G., Li, L., & Meng, L. (2020). The effect of artificial intelligence on China’s labor market. China Economic Journal, 13(1). https://doi.org/10.1080/17538963.2019.1681201
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Jurnal Bisnis dan Manajemen (JBM) allows readers to read, download, copy, distribute, print, search, or link to the full texts of its articles and allow readers to use them for any other lawful purpose. The journal allows the author(s) to hold the copyright without restrictions. Finally, the journal allows the author(s) to retain publishing rights without restrictions.
Authors are allowed to archive their submitted article in an open access repository, and the final published article in an open access repository with an acknowledgment of its initial publication in this journal