Implications of Artificial Intelligence

The Organization for Economic Cooperation and Development (OECD) has pointed out the significant uncertainties surrounding the current and future impacts of artificial intelligence (AI), especially in terms of jobs. It noted that the technology will affect almost all service sectors and all professions.

According to the Organization for Economic Cooperation and Development (OECD), AI will “undoubtedly have significant implications for the labor market, but so far it has mainly affected the quality of jobs rather than employment rates.”

In its “Employment Outlook 2023,” the organization noted the significant uncertainties surrounding the current and future impacts of AI, especially on jobs, noting that the technology will affect “almost all service sectors and all professions” and that “the speed of development is unprecedented.”

“There is little evidence of significant negative repercussions of AI on employment,” the organization said, arguing that “potential negative effects” may “take time before they start to emerge,” saying: “So far the published work shows that AI mainly affects the quality of jobs.

While the study noted that employees and employers reported that AI can reduce tedious and dangerous tasks and increase workers’ motivation and physical well-being, it noted that it is not without risks: “Automating simple tasks with AI seems to have sometimes led to a more sustainable pace of work.”

According to the OECD, “social action and dialogue have a key role” in addressing the risks of AI, particularly through regulation or by “encouraging employers to provide training,” but also by “supporting workers and businesses in the transition to AI.”

On the other hand, regarding labor markets, the study noted that “since 2022, the strong recovery recorded after the recession caused by the Covid pandemic has begun to wane,” while inflation has reached levels not seen “in decades in many countries”: “However, employment rates remain the same … and unemployment is at its lowest level in several decades,” it said.

In addition, real salaries are falling in the majority of OECD countries with a loss of purchasing power “which is an issue for workers from middle-income families.”

-Ayman Al-Tamimi