The rapid advancement of artificial intelligence has sparked significant debate regarding its impact on the workforce. This report explores both the challenges and opportunities AI presents in the workplace, with a focus on job displacement, skill gaps, and the ethical implications of AI integration. Through a systematic literature review, this study analyzes recent research on AI's effects on the workplace. The findings highlight a growing concern over job losses due to AI automation and the need for reskilling and upskilling initiatives to help workers adapt to new technological demands. Ethical concerns, such as transparency and overreliance on AI, are discussed in relation to organizational responsibility and the preservation of fundamental human skills. The study concludes that AI should be seen as a tool to augment human capabilities rather than replace them, emphasizing the importance of collaboration between businesses, governments, and educational institutions to ensure a future where artificial intelligence empowers rather than diminishes the human workforce.