Shaping AI-related competencies for labor market and business. A PLS-SEM approach

In the era of digitalization and rapid technological advancement, artificial intelligence (AI) has emerged as a decisive factor in transforming the labor market, requiring the continuous adjustment of educational competencies to prepare students for the labor market demand. This study investigates the impact of AI on educational requirements, identifying the essential competencies that educational systems and the business sector must shape to equip future professionals for AIdriven challenges and opportunities. Employing Partial Least Squares Structural Equation Modeling (SEM), the research analyzed the survey data from a sample of 138 educators from various pre-university and university environments in Bihor county, Romania. to determine the relationships between the educational system, business sector, educational competencies, and AI career preparedness. The findings show significant influences from both sectors in shaping competencies that, in turn, affect labor market demands. This study highlights the imperative for educational systems the business sector to develop forward-thinking programs that anticipate future changes, thereby maximizing an AI-driven economy’s economic and social benefits. The results indicate that both the educational system and the business sector are integral to developing the competencies required in the AI era, with AI career preparedness exerting the greatest influence on labor market demands.