The Impact of Artificial Intelligence (AI) Adoption on Employment Rates in Palopo City
Keywords:
AI Adoption, Labor Absorption, Simple Linear Regression, Palopo City, Reinstatement Effect.Abstract
Advances in artificial intelligence (AI) technology have the potential to both diminish the role of the human workforce and open up new opportunities through job creation and increased industrial productivity. This study aims to analyze and empirically demonstrate the impact of artificial intelligence (AI) adoption on employment rates in Palopo City. The method used was a quantitative approach with a Likert-scale questionnaire distributed to 40 respondents. Data analysis was conducted using validity tests, Cronbach’s Alpha reliability tests, classical assumption tests (Kolmogorov-Smirnov and Monte Carlo normality tests), and simple linear regression analysis. The results of the study show that all instruments were found to be valid (R calculate>0,312,p<0,05) and very reliable ( ; . The regression equation obtained is Y = 3.930 + 0.604X, which indicates a positive and significant relationship between AI adoption and employment. ; . Furthermore, the coefficient of determination Advances in artificial intelligence (AI) technology have the potential to both diminish the role of the human workforce and open up new opportunities through job creation and increased industrial productivity. This study aims to analyze and empirically demonstrate the impact of artificial intelligence (AI) adoption on employment rates in Palopo City. The method used was a quantitative approach with a Likert-scale questionnaire distributed to 40 respondents. Data analysis was conducted using validity tests, Cronbach’s Alpha reliability tests, classical assumption tests (Kolmogorov-Smirnov and Monte Carlo normality tests), and simple linear regression analysis. The results of the study show that all instruments were found to be valid (R calculate>0,312,p<0,05) and very reliable ( ; . The regression equation obtained is Y = 3.930 + 0.604X, which indicates a positive and significant relationship between AI adoption and employment. ; . Furthermore, the coefficient of determination ( ) of 0.901 indicates that 90.1% of the variation in employment in Palopo City is explained by AI adoption, while the remaining 9.9% is influenced by other external factors. In conclusion, AI adoption in Palopo City has proven to serve as a complementary technology capable of driving the expansion of employment and realizing the reinstatement effect. These findings have important implications for local governments and businesses to continue accelerating the training and upskilling of local human resources so they can adapt to a technology-based job ecosystem. ( ) of 0.901 indicates that 90.1% of the variation in employment in Palopo City is explained by AI adoption, while the remaining 9.9% is influenced by other external factors. In conclusion, AI adoption in Palopo City has proven to serve as a complementary technology capable of driving the expansion of employment and realizing the reinstatement effect. These findings have important implications for local governments and businesses to continue accelerating the training and upskilling of local human resources so they can adapt to a technology-based job ecosystem.
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