The Transformative Impact of Artificial Intelligence on US Labor Markets: Workforce Disruption, Skill Evolution, and the Emergence of Prompt Engineering

This comprehensive analysis examines the profound impact of artificial intelligence (AI) on global labor markets, focusing on workforce disruption patterns, emerging skill requirements, and the critical rise of prompt engineering as a core competency. Drawing from over 70 authoritative sources, we find that AI is expected to affect approximately 40% of jobs globally, with generative AI potentially transforming up to 90% of existing occupations. While automation may displace 85 million jobs by 2025, it is projected to create 97 million new roles, representing a net positive employment shift. The impact, however, varies by region—advanced economies face higher disruption levels (around 60% of jobs affected), compared to emerging markets (40%) and low-income countries (26%).Prompt engineering has emerged as an essential cross-domain skill, spanning finance, healthcare, education, and creative industries. Organizations implementing structured AI training programs report 45–60% improvements in workforce adaptation and productivity, with prompt engineering training yielding performance effect sizes between 1.24 and 1.32 standard deviations based on current literature. These findings highlight the shifting nature of human–AI collaboration and underscore the urgency of integrating AI literacy and prompt design into professional development frameworks.This research concludes with strategic recommendations for policymakers, educators, and industry leaders, advocating for proactive investment in AI literacy, adaptive workforce policies, and equitable access to AI skill development. Such measures are critical to harness AI’s transformative potential while mitigating displacement risks, fostering resilient and inclusive labor markets in the era of intelligent automation. All results and proposals are from cited literature.