A Systematic Investigating Of Differences Among Automation as well as Wage Distribution System using ML Algorithm

Technological changes have made automation an increasing fear for income equality. The paper will present an insightful view of the intricate relations between AI-based automation and wage distribution within an economy. Principally, it seeks to rationalize the channels through which automation impacts income distribution and to examine the policy remedies. The article sets the enormous growth of automation within a broader context of the technological revolution, looking precisely at the effects that AI is causing for other disciplines. The effects of the distribution of income are not very clear whether automation will have an effect on productivity and economic growth, despite it mostly increased the productivity in history. This is changing with AI on the horizon to be competent in dealing with complex cognitive tasks. Hence, this raising view brings up questions in regard to their implication on wage distribution along the skill spectrum, when automation is said to only affect and take away low-skilled labor. The aim of this article is to synthesize empirical evidence on AI-driven automation and its consequences for income inequality, based on an extensive literature review of existent papers. The paper examines how automation affects different labor market segments, whereby the study displacements of routine task-based jobs and creations of new job opportunities that demand complementary skills. The paper also explains how automation impacts workers’ bargaining power and the distribution of gains from trade between labor and capital.