Recent developments and the rapid adoption of Artificial intelligence (AI) bring a great potential to transform industries. The technology changes the nature of work by enhancing human capabilities; it brings opportunities for innovation and productivity increases. Yet, it is also expected to have large and complex labor market consequences (Acemoglu and Restrepo 2020). The research project aims to contribute to our understanding of the role of AI adoption by firms and workers in changing labor market and inequality using comprehensive register-based and survey data from Denmark.