Abstract:The innovation and application of artificial intelligence (AI) technology, while creating value for human beings, have great impacts on social economy, and in particular the current employment situation as well. Based on the literature review concerned as well as the previously formulated mechanism frameworks of technological progress on employment, this study aims at making a detailed analysis on the impacts of AI technology on globalization and the international division of labor, personalized product design and service mode, and working mode and organizational form. In addition, this study has also explicated the substitution and creation effects of employment, and formulated a theoretical model of the impact mechanism of AI on employment.