Abstract:
The rapid integration of Artificial Intelligence (AI) into the Sri Lankan IT sector
presents both opportunities and challenges for employability. While AI enables
innovation and efficiency, it also raises concerns about potential job displacement
and changing skill requirements. The research aims to examine the influence of AI
on employability in terms of job displacement, job creation, and evolving workforce
skill requirements. A quantitative, deductive approach was adopted, using a
convenience sampling method was applied to 384 IT professionals. Data were
collected through structured questionnaires and analyzed using SPSS with descriptive
statistics, correlation, and regression analysis. Results indicate a statistically
significant positive relationship between AI and employability. AI adoption
contributes to job creation in specialized fields such as AI development, data science,
and ethics, while also displacing roles involving routine and repetitive tasks.
Changing workforce skill requirements particularly in digital literacy, adaptability,
and AI-related competencies show the strongest correlation with employability
outcomes. The study concludes that Sri Lanka’s IT workforce must proactively
engage in reskilling and upskilling to remain competitive, and that coordinated action
between industry, academia, and policymakers is essential to align skills development
with evolving market demands. This research contributes to the literature by offering
localized, data-driven evidence on AI’s dual impact, supporting the development of
targeted educational and workforce strategies in emerging economies.
