DISPLACEMENT VS. TECHNOLOGICAL AUGMENTATION IN THE ERA OF ARTIFICIAL INTELLIGENCE: IMPLICATIONS FOR SUSTAINABLE EMPLOYABILITY AND THE ROLE OF ESG-ORIENTED FIRMS IN THE GLOBAL SOUTH

Abstract

The advent of Artificial Intelligence (AI) has dramatically reshaped global labor markets, presenting both opportunities and challenges. While AI-driven automation poses a significant risk of job displacement, particularly for low-skilled workers in sectors such as manufacturing, retail, and agriculture, it also holds the potential for technological augmentation, which can enhance human productivity and create new roles. This literature review explores the dual forces of displacement and augmentation in the context of sustainable employability, with a particular focus on the Global South. It highlights the varying impact of AI adoption across regions, noting that high-income countries are better equipped to manage these shifts through reskilling programs and technological infrastructure, while the Global South faces unique challenges due to limited resources. The review also emphasizes the role of ESG-oriented firms in promoting ethical AI practices and sustainable employment opportunities, particularly in developing economies. These firms have the potential to drive inclusive growth by investing in training programs and ensuring that AI is deployed in ways that benefit both businesses and society. Overall, this study provides insights into the need for a balanced approach to AI adoption, ensuring that its benefits are widely distributed and contribute to sustainable economic development.