During the 1970s and 1980s, the share of employment in traditional manufacturing industries declined significantly across advanced global economies, including those of the UK, US, Germany, France, and Japan. By the 1990s, only 0.2% of the total employment was employed in traditional industries and the manufacturing sector in these countries. Within the field of economic and social history, many historians and political economists argue that deindustrialisation, a term for the falling share of employment and decline in manufacturing industries, is evidence of an economic decline and has led to social division and inequality in society (Kamitake, 1990; Martin, 1988). Meanwhile, the counterparts of this believe that deindustrialisation was a natural economic phenomenon that came because of the need to increase the country’s economic growth and prosperity and led to the creation of new jobs (Crafts, 2012; Tomlinson, 2014). In the age of Artificial Intelligence (AI), deindustrialisation has become more important than ever because of its ability to disrupt the labour market and employment rates. This research examines the impact of AI on labour markets, drawing insights from the economic history of the causes and impact of the peak of deindustrialisation during the 1970s and 1980s. Additionally, this research argues that deindustrialisation is a natural economic phenomenon that leads to growth and labour productivity of the national economy, and revolutionary changes such as universal basic income and governmental regulations are required to tackle the challenges escalated by AI.