The rapid evolution and widespread adoption of Artificial intelligence (AI) technologies are transforming the nature of work, presenting both opportunities and challenges in achieving the Sustainable Development Goal of productive and decent employment for all (SDG 8). While AI powered automation and augmentation can enhance efficiency, productivity, and decision making, driving innovation and economic growth, the unprecedented pace of change also raises concerns about job displacement, workforce disruption, and widening socio-economic divides. Navigating this complex landscape requires a multifaceted approach that balances the transformative potential of AI with proactive investment in education, training, and the development of ethical frameworks, as well as collaborative efforts between stakeholders, to harness the power of AI for positive societal transformation and a future of work that is both technologically advanced and socially responsible. The impact of AI on unemployment is multifaceted and debated. While AI has the potential to automate certain jobs, leading to displacement, it can also create new job opportunities and increase overall productivity. AI can replace repetitive tasks, transform existing jobs, and require new skill sets. The net impact on unemployment depends on the rate of AI implementation, workforce adaptability, and the creation of new jobs. So, the main objective of the study is to analyze the impact of AI technology on the labor market in Egypt and to determine to what extent AI affects unemployment in Egypt. The study used a regression model to test the relation between AI and unemployment in Egypt during the period of 2000 to 2022. The study concluded that There is a positive relationship between the artificial intelligence and unemployment. where the results showed that a 1% increase artificial intelligence will lead to around a 0.001 increase in unemployment. As the implementation of AI can lead to job displacement as automation replaces certain human tasks.