Title: The Impact of Artificial Intelligence on the Labor Market: Challenges, Opportunities, and Policy Implications Thesis Statement: The rapid integration of artificial intelligence (AI) into various industries has triggered profound transformations in the labor market, presenting both unprecedented opportunities for economic growth and societal advancement, while also posing significant challenges to workforce employability and income distribution. This thesis aims to comprehensively examine the multifaceted effects of AI on the labor market, assess its implications on job displacement and creation, analyze the potential for skill mismatches, and propose a set of policy recommendations to ensure a smooth transition and inclusive growth in the AI-driven economy.