Author(s): Renushree H K
AI is simultaneously displacing routine jobs and creating new high-skill roles, demanding urgent policy and retraining responses. This study explores how Artificial Intelligence (AI) is reshaping the labour market, not only by displacing some jobs, but also by opening up new opportunities and altering the kinds of skills people need. In everyday life, we see automation replacing routine and low-skilled work in places like factories, shops, and customer service centres. At the same time, AI is fuelling demand for experts in areas such as data science, cybersecurity, and AI ethics. This transformation brings real worries for many: workers whose jobs are replaced may struggle to find new roles that require advanced technical skills, which can deepen divides in income and opportunity. To better understand these changes, we systematically reviewed 432 research studies published since 2018, focusing closely on the 154 most relevant works. Our analysis uncovers which sectors are most at risk, highlights the increasing need for specialized skills, and points to the urgent importance of retraining and upskilling the workforce. We also emphasize the crucial role of policy, including educational reforms and strategies to ensure that the growth fueled by AI is shared fairly. Collaboration among governments, industries, and universities is vital to help people adapt and thrive. By bringing together the latest evidence, this paper contributes to the ongoing conversation about the future of work, showing how AI is both a disruptive force and a potential driver of more inclusive and equitable changes in the labour market.