Why AI could have a significant impact on jobs?

OGTC Artificial intelligence and jobs

Why AI could have a significant impact on jobs

While firms’ adoption of AI is still relatively low, rapid progress including with generative AI (ChatGPT), falling costs and the increasing availability of workers with AI skills suggest that countries may be on the brink of an AI revolution.

It is vital to gather new and better data on AI uptake and use in the workplace, including which jobs will change, be created or disappear, and how skills needs are shifting.

When considering all automation technologies including AI, 27% of jobs are in occupations at high-risk of automation. Initial findings from a new survey of AI's impact in the manufacturing and finance sectors of seven countries highlight both the opportunities and risks that AI brings.

Artificial intelligence and jobs,An urgent need to act

labour markets remain tight even as the recovery has stalled, with unemployment at a low not seen since the early 1970s. Yet, nominal wages have not kept up with high and persistent inflation, and real income of workers has fallen in all countries. Increasingly rapid developments in AI are likely to significantly affect jobs. Initial results from a on AI use in the manufacturing and finance sectors show the urgent need to act now, with policies that allow countries, firms and individuals to benefit from AI, while addressing risks.

Labour markets have stabilised

Labour markets remain very tight in most OECD countries although the number of vacant positions per job seeker has declined in many countries. Employment has stabilised at a level slightly higher than before the COVID crisis, while unemployment rates across the OECD remain historically low. Labour market participation has increased as well, with fewer working-age people inactive than before the COVID-19 crisis, and the average hours worked per employed person are above or just below pre-crisis levels in most countries.

Amid a cost-of-living crisis, real wages are down

Labour markets have pushed up nominal wages, but less so than inflation, leading to a fall in real wages in almost all industries and OECD countries. The real value of statutory minimum wages has been preserved thanks to regular adaptation to inflation in many OECD countries. This is particularly important as high inflation weighs heavily on low-income households. Company profits have risen more than labour costs in many countries and sectors, suggesting that the cost-of-living crisis has not been shared equally by everyone.

Artificial intelligence and jobs

AI likely to significantly impact jobs

While firms’ adoption of AI is still relatively low, rapid progress including with generative AI (e.g. ChatGPT), falling costs and the increasing availability of workers with AI skills suggest that OECD countries may be on the brink of an AI revolution. It is vital to gather new and better data on AI uptake and use in the workplace, including which jobs will change, be created or disappear, and how skills needs are shifting. When considering all automation technologies including AI, 27% of jobs are in occupations at high-risk of automation. Initial findings from a new OECD survey of AI's impact in the manufacturing and finance sectors of seven countries highlight both the opportunities and risks that AI brings.