LEGAL AND ETHICAL IMPLICATIONS OF AI-INDUCED JOB DISPLACEMENT IN MULTINATIONAL CORPORATIONS: A COMPARATIVE ANALYSIS BETWEEN THE UNITED STATES AND INDIA

Abstract

The rapid advancement of Artificial Intelligence (AI) has significantly transformed global industries, offering unprecedented efficiency and innovation while simultaneously raising concerns over workforce disruption. This research investigates the legal and ethical implications of AI-induced job displacement within multinational corporations (MNCs), providing a comparative analysis between the United States and India over the last five years (2021–2025). This study evaluates sector-wise job displacement trends, growth rates, and their socio-economic impacts. Utilizing cumulative frequency analysis, year-on-year percentage growth, and sectoral impact assessment, the paper highlights how early AI adoption in the U.S. has led to steady job displacement, whereas delayed but rapid AI integration in India has resulted in sudden employment shocks. The research further explores employment discrimination laws, data privacy frameworks, intellectual property (IP) concerns, and algorithmic bias mitigation, identifying critical gaps in both countries’ regulatory landscapes. Ethical considerations such as fairness in automated decision-making, employee dignity, and inclusive growth are discussed in depth. The findings suggest that without robust policy interventions, reskilling programs, and global ethical AI governance, AI-driven displacement could intensify labor inequalities. The paper concludes with targeted recommendations for governments, MNCs, and international bodies to foster responsible AI adoption while ensuring workforce resilience.