Artificial intelligence (AI) is revolutionising society. By enhancing productivity, stimulating economic growth and creating new job opportunities, AI could significantly enhance human work and the labour market. However, AI also presents challenges such as job displacements if the transition to using it is not properly managed. This paper examines how AI is transforming labour markets and shifting skill requirements and the policy responses needed to harness AI’s transformative potential while mitigating its social and economic risks.

The effects of AI on employment differ across sectors, regions and cities, as well as across skill levels. Adapting to this shift requires developing new skills that align with evolving labour market demands. Policymakers play an essential role in ensuring workers are equipped to thrive in an AI-driven economy. 

Key findings

• AI adoption is accelerating, with differences across firms.
• AI is transforming jobs but not necessarily destroying them.
• Exposure to AI differs from risk of automation.
• Individuals need a wide range of skills to thrive in digital societies.
• Governments can help shape skills for the AI age.