<![CDATA[The rapid adoption of Artificial Intelligence (AI) has significantly transformed the service sector by automating routine tasks, enhancing decision-making, and improving operational efficiency. This study aims to analyze the impact of Artificial Intelligence on labor productivity in the service sector. A quantitative research approach was employed using a survey distributed to 200 employees from various service industries. Data were analyzed using Structural Equation Modeling Partial Least Squares (SEM-PLS) to examine the relationship between AI implementation and workforce productivity. The findings reveal that AI adoption has a positive and significant effect on labor productivity by increasing work efficiency, reducing operational errors, and supporting faster decision-making. The study concludes that effective AI integration can enhance organizational productivity while requiring continuous workforce adaptation through digital skills development and technological readiness]]>
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