More than a quarter of jobs in the Organisation for Economic Co-operation and Development (OECD) are at risk of being automated in the upcoming artificial intelligence (AI) revolution, warns the OECD in its latest report. OECD’s 2023 Employment Outlook reveals that approximately 27% of the labor force in OECD countries is employed in occupations highly susceptible to automation. The report highlights that Eastern European nations are particularly exposed to this risk. Jobs with the highest automation risk are defined as those relying on over 25 out of 100 skills and abilities that could be lost due to the AI Revolution.
Automation threat looms as the AI revolution progresses
The potential threat of job displacement by AI is not unfounded, as a survey conducted by the OECD last year reveals that 3 out of 5 workers fear losing their jobs to AI within the next decade. 5,300 employees from 2,000 companies in the industrial and finance sectors across seven OECD nations were included in the survey. It is worth noting that the survey was conducted before the explosive emergence of generative AI models like ChatGPT.
Interestingly, despite concerns surrounding AI’s impact on employment, two-thirds of workers who already work with AI technologies state that automation has made their jobs less dangerous or monotonous. This suggests that while certain roles may be at risk of automation, AI can also offer potential benefits to the workforce. The Paris-based organization consists of 38 member countries and in each of its offices, AI technologies could easily replace certain skills crucial to these jobs. While there is limited evidence of AI’s significant impact on employment thus far, experts believe it is due to the early stages of the revolution.
Policy actions for a balanced approach
Speaking at a news conference, OECD Secretary-General Mathias Cormann stressed the importance of policy actions in determining how AI will ultimately affect workers and whether the advantages will outweigh the risks. He emphasized the need for governments to assist workers in preparing for these changes and capitalizing on the opportunities presented by AI. Cormann further stated that safeguarding workers’ rights should be a priority for governments and regulators to prevent any compromise in the face of AI advancements.
To mitigate the potential negative impacts of AI on wages, the OECD suggests implementing measures such as minimum wages and collective bargaining. These mechanisms can help alleviate the pressure that AI might exert on the workers’ income. Additionally, governments and regulators should ensure that workers’ rights remain protected as AI technologies continue to evolve.
The OECD’s Employment Outlook report highlights the substantial risk faced by a significant portion of the workforce in OECD countries due to the AI revolution. While the true impact of AI on jobs is yet to be fully realized, workers express concerns about the potential loss of employment opportunities. However, the report also acknowledges that AI can offer certain benefits by making jobs safer and less repetitive. Governments and policymakers need to adopt proactive measures to prepare workers for these changes and create an environment where the advantages of AI outweigh the associated risks. By implementing policies that protect workers’ rights and promote collective bargaining, societies can effectively navigate the AI revolution while ensuring a fair and inclusive future of work.
