The Impacts of Artificial Intelligence on the Brazilian Labor Market

This study examines the impact of Artificial Intelligence (AI) on Brazil's labor market by applying the Artificial Intelligence Occupational Exposure (AIOE) index, initially developed for the U.S., to Brazilian data. Using microdata from IBGE’s PNAD-C survey, we assess AI exposure across occupations, states, and employment types, and analyze how exposure correlates with wage levels and labor characteristics such as education, formality, and age. Our findings reveal that AI exposure is highest in urbanized and economically advanced regions, particularly in occupations requiring cognitive and communicative tasks. Surprisingly, informal occupations often show higher AI exposure due to their task composition. Furthermore, regression analysis indicates a negative relationship between AI exposure and median wages, suggesting early-stage substitution effects in the Brazilian context. These insights underline the importance of targeted public policies to support workforce adaptation and mitigate inequalities exacerbated by AI-driven transformations.