ABSTRACT

This study examines how artificial intelligence, IT infrastructure, and cybersecurity shape digital inequality during labour market transformation in the European Union. Using an integrated analytical framework and panel data analysis, it responds to a research gap in which these dimensions have largely been assessed separately. Findings indicate that artificial intelligence can widen digital inequality when adequate institutional and technological support is lacking. In contrast, advanced IT infrastructure and strong cybersecurity may reduce such disparities by improving access to digital resources, supporting participation in the digital economy, and strengthening trust in digital systems. Further evidence shows that the influence of artificial intelligence on digital inequality varies according to infrastructural capacity and cybersecurity preparedness. This confirms the relevance of broader structural and institutional conditions in determining the outcomes of digital transformation. A key contribution of this study is its integration of technological, infrastructural, and institutional factors within a unified framework. It also emphasizes cybersecurity as a significant component of digital inequality and provides empirical evidence from the European Union context. Policy implications suggest that AI-driven development should be supported by investment in connectivity, digital skills, and cyber resilience. Coordinated policy measures are necessary to foster innovation while advancing digital inclusion and institutional capacity. Limitations arise from the use of aggregated country-level data and proxy indicators for artificial intelligence and cybersecurity. Future research should consider more detailed datasets, sector-specific differences, and the long-term effects of digital transformation on labour markets. Overall, the study demonstrates that the link between artificial intelligence and digital inequality is multidimensional and context-dependent. Inclusive digital transformation requires technological advancement together with robust infrastructure, cybersecurity, and effective public policy.