Economic Implications of Adopting Artificial Intelligence for Competency Mapping in the it Sector

Artificial Intelligence (AI) has emerged as a powerful force shaping the modern economy, particularly within the Information Technology (IT) sector, where it is redefining work practices through competency mapping. Traditionally, organizations operated within clearly defined work structures involving fixed time schedules, task allocations, and shift systems. However, rapid advancements in AI have fundamentally altered the nature of work, shifting it from labor intensive processes to software-driven operations.The IT sector is currently witnessing significant workforce restructuring, including employee layoffs, necessitating a critical reassessment of existing competency mapping frameworks. In this context, evaluating employee performance has become increasingly important in order to align workforce capabilities with evolving technological demands. This study emphasizes the need for a strategic approach in which employees actively utilize AI tools and models to enhance innovation and productivity within their respective roles.The primary objective of this research is to examine the impact of AI adoption on competency mapping practices in the IT sector. The study analyzes data from the period 2021 to 2023 using Multiple Regression Analysis as the principal analytical technique. A stratified random sampling method was employed to select a representative sample of 500 IT employees, based on a pilot study constituting 0.50 percent of the total population. Competency mapping, in essence, involves identifying and aligning the critical skills, knowledge, and abilities required for specific job roles. The study advocates that IT organizations should ensure comprehensive AI literacy among employees by integrating best practices from the industry. Such a proactive approach will enable the workforce to effectively leverage AI technologies and remain resilient in an increasingly dynamic economic environment. Keywords: Artificial Intelligence, Competency Mapping, Employee Practices, Employee Performance