{"manuscript_title":"<b>Labor Protection, Artificial Intelligence, and Labor Allocation Efficiency</b>","abstract":"This study analyzes how artificial intelligence (AI) addresses the traditional challenge of labor protection. We construct a mathematical model and employ a triple-differences strategy to examine the relationship among labor protection, AI, and labor allocation efficiency. The results demonstrate that labor protection lowers enterprise labor allocation efficiency. However, enterprises improve their labor allocation efficiency by adopting AI, as predominantly observed in non-small and micro-sized enterprises (non-SMSEs). Notably, AI replaces low-skilled workers, reshapes the production function, and narrows the marginal labor productivity–pay gap, consequently increasing labor allocation efficiency. Further analysis reveals that, under the impact of labor protection, AI-integrated non-SMSEs achieve output growth, whereas non-AI-integrated SMSEs experience output decline. Per our findings, AI can mitigate resource allocation distortions ensuing from labor protection. This efficiency-enhancing approach exhibits enterprise heterogeneity. Accordingly, we expand AI’s theoretical and practical utilities, while providing important practical evidence for future policies vis-à-vis SMSEs.","keywords":["labor protection","AI","labor allocation efficiency","small and micro-sized enterprises"]}