Purpose: This research paper analyzes the relationship between the adoption of technology, employment trends, and skills of the employees working in Ayodhya, which is a historically important city and has been experiencing rapid social and economic changes owing to the reconstruction of Ram Mandir.
Methodology: This research was based on data obtained from a primary survey, which was conducted using Google Forms online and offline in the period of January to April 2025. The sample size for the research was respondents comprising from the tourism, hospitality, manufacturing, and service industries. The variables under study were examined through regression analysis, and Structural Equation Modeling.
Findings: Based on the findings, it was clear that there were changes regarding the increased need for digitally skilled people. There was a noticeable change in the workforce as a result of automation technology in the industries. However, there was stability in traditional service jobs. Workers who have digital readiness skills work better able to adapt well to the environment created by AI technologies.
Novelty: The current study represents one of the initial attempts at empirically measuring AI-induced labor transformations from the perspective of a heritage city, offering insights into workforce transitions in a rapidly modernizing pilgrimage-oriented urban economy.