Economics of ChatGPT: A Labor Market View on the Occupational Impact of Artificial Intelligence

Abstract

This study examines how ChatGPT affects the labor market. I first thoroughly analyzed the prior research that has been done on the subject in order to start understanding how ChatGPT and other AI-related services are influencing the labor market. Using the supply and demand model, I then assess ChatGPT's impact. This paper examines this innovation's short- and long-term effects on the labor market, concentrating on its challenges and opportunities. Furthermore, I employ a text-mining approach to extract various tasks from the International Standard Occupation Classification to present a comprehensive list of occupations most sensitive to ChatGPT.

Keywords: Large Language Models; Artificial Intelligence; Automation, Labor Saving Technology, ChatGPT, Labor Market, Generative AI, Occupational Classification

JEL Classification: O33, E24, J21, J24