Sectoral Impact of Artificial Intelligence on Employment: Evidence from Achampet, Nagarkurnool District of Telangana State

Abstract

Artificial Intelligence (AI) has emerged as a transformative force reshaping production processes, labour demand, and employment structures across sectors. While AI adoption has expanded rapidly in urban and industrialized regions, its implications for employment in semi-rural and rural economies remain underexplored. The present study examines the impact of Artificial Intelligence on employment in agriculture, industry, and service sectors in Achampet of Nagarkurnool District, Telangana, based on primary data collected from 120 respondents. The study applies suitable statistical tools such as Chi-Square Test, One-Way ANOVA, Correlation Analysis, and Mean Score Analysis to analyze sector-wise awareness, adoption, perception, skill requirements, and income effects of AI. The findings reveal significant sectoral differences in AI awareness and adoption, with the service sector leading, followed by industry and agriculture. While AI is largely perceived as an opportunity in the service sector, agricultural workers express concerns regarding job displacement. The study concludes that AI influences employment not merely through job loss or creation, but through job transformation and skill reorientation, highlighting the need for inclusive policies, targeted training, and sector-specific interventions.