The present Master's thesis seeks to study the effect of Artificial Intelligence (AI) on the European Internal Market, with the main focus on the labor market, primarily education and skills demand change. After the Introduction to the topic and description of the paper; in the second part of the thesis theoretical explanation of the given topic is summarized with the help of questions like: „What is the European Union? Which are the specifics of the EU Internal Market? What is AI and which types of AI exist? How can AI be implemented in the labor market? “. The third part of the paper consists primarily of practical research data on the specific topics; various figures and tables have been gathered and analyzed. As an introduction to the EU labor market, main labor market indicators in a period of ten years have been observed, which helped to identify the pattern of changes and reveal basic tendencies in employment and education. Then, current levels of development and penetration of AI in the European Internal Market have been studied, along with specific trends related to education, employment, and skill demand. Future forecasts made by world main analytic companies, revealed current and possible patterns of changes. Finally, the European Union has been compared to other countries in terms of the level of performance and implementation of the AI in its Internal Market.