WORKFORCE DISPLACEMENT AND EMPLOYEE PERCEPTIONS OF AI ADOPTION IN PAKISTAN'S AUTOMOTIVE INDUSTRY

Abstract

Artificial intelligence (AI) is transforming the automotive industry by improving production efficiency, quality control, predictive maintenance, and decision-making. However, the increasing adoption of AI technologies has also raised concerns regarding workforce displacement, job security, and employee adaptation, particularly in developing countries such as Pakistan. This study examines workforce displacement and employee perceptions of AI adoption in Pakistan's automotive industry. Using a quantitative research design, data were collected through a structured questionnaire administered to employees working in automotive manufacturing and assembly firms. The findings indicate that while employees acknowledge the benefits of AI in enhancing productivity, operational efficiency, and workplace safety, many also express concerns about job displacement, changing skill requirements, and reduced employment opportunities for low-skilled workers. The study further reveals that organizational support, employee training, and reskilling initiatives significantly improve employees' acceptance of AI technologies. The research concludes that successful AI implementation requires balancing technological advancement with workforce development through inclusive policies, continuous training, and strategic human resource management to ensure sustainable industrial growth and employee well-being in Pakistan.