Background: The rapid development of Artificial Intelligence (AI) has reshaped the global labor market and poses significant challenges to female workers, who are more likely to be employed in repetitive and data-based sectors vulnerable to automation. This study aims to examine the urgency of legal protection and labor law reform in Indonesia to address the potential risk of unemployment, gender discrimination, and social inequality arising from AI-driven automation. Previous studies have highlighted that women face structural disadvantages in the labor market due to their concentration in low-wage sectors and limited access to digital skills, as also emphasized by UNESCO. However, existing Indonesian labor regulations, such as the Manpower Law and Job Creation Law, have not explicitly regulated the impact of AI in employment. Methods: The research applies a normative juridical method with a statutory, conceptual, and comparative approach, supported by literature reviews of international practices in Germany and Singapore, where governments have initiated reskilling and vocational education policies to mitigate the impact of AI. Findings: Findings reveal that the absence of specific legal provisions in Indonesia leads to legal uncertainty and weak protection for women workers facing layoffs due to automation. This study proposes the concept of SETARA (Strategy for Empowering and Transforming Women’s Labor) as a strategic model to strengthen the role of female workers. The strategy consists of three core elements: reskilling, upskilling, and labor law literacy, implemented through a pentahelix collaboration involving government, businesses, society, academia, and mass media. Conclusion: The principal conclusion is that labor law reform in Indonesia must be adaptive to technological disruption and inclusive of gender perspectives to ensure sustainable and equitable labor protection. Novelty/Originality of this article: The novelty of this research lies in integrating gender-sensitive legal reform with AI governance through the SETARA model, which provides an innovative framework to balance technological advancement with social justice.