This report provides an overview of the recent advancements in artificial intelligence (AI) and examines its potential to automate jobs in the Korean labor market. Through an analysis that merges expert assessments of AI capabilities with the skill profiles of occupations in Korea, it is found that, as of 2023, 38.8% of current jobs are at risk of having over 70% of their tasks automated. Predictions for 2030 suggest that nearly 90% of tasks across 90% of existing job types might be subject to automation, if the current task structure should remain as it is.

Nevertheless, the technical feasibility of automation does not directly translate to an imminent risk of automation. As of the end of 2021, only 2.7% of private firms with more than ten employees had adopted AI according to official statistics. When considering the differential AI adoption rates by firm size, it is estimated that about 10% of the workforce is exposed to AI.

In pursuit of a more nuanced understanding of the actual risk posed by automation, this research delves into the impact of increased AI exposure within local labor markets. The findings suggest that while AI's introduction does not meaningfully affect total employment, it tends to lower earnings, with women's average earnings disproportionately affected. More granular analyses indicate that an increase in AI exposure, driven by plausibly exogenous factors, has primarily resulted in diminished employment and earnings opportunities for younger workers at the nascent stages of their careers.

Drawing from these findings, this report proposes policy recommendations to navigate the challenges posed by AI in the labor market effectively.

Preface
Executive Summary

Chapter 1 Introduction

Chapter 2 The History and Present of Artificial Intelligence Technology
　Section 1 A Brief History of AI Technology
　Section 2 Current Status of AI Technology
　Section 3 Interviews with Experts on the Current Status and Policy Directions of AI Technology
　Section 4 Conclusion

Chapter 3 AI Technology and the Potential for Job Automation: Based on AI Experts and GPT-4 Survey Results
　Section 1 Introduction
　Section 2 Existing Literature and Recent Developments in the Debate
　Section 3 Data
　Section 4 Research Methodology
　Section 5 Key findings: Current Status and Prospects for AI Workplace Performance Levels
　Section 6 Estimation Results
　Section 7 The Future of the Professional: Interviews with Experts in the Fields
　Section 8 Conclusion

Chapter 4 Adoption and Utilization of AI Technology by Korean Companies
　Section 1 Adoption and Utilization of New Technologies
　Section 2 AI Adoption Rates from Official Statistics
　Section 3 KDI Survey
　Section 4 Conclusion

Chapter 5 Impact of AI Technology Adoption and Utilization on Employment and Wages in Korea
　Section 1 Introduction
　Section 2 Existing Literature and Theoretical Review
　Section 3 Data
　Section 4 Analytical Model
　Section 5 Estimation Results (1): AI Adoption and Firm Employment
　Section 6 Estimation results (2): Regional-level AI impact and labor market outcomes
　Section 7 Conclusion

Chapter 6 Conclusions and Policy Implications
　Section 1 Executive Summary
　Section 2 Policy Implications

References
Appendix
ABSTRACT