What are the potential consequences of AI on labor income according to the latest ILO study

Explore the findings of the recent ILO study that connects artificial intelligence to a decline in labor income.
The latest ILO study suggests that the proliferation of AI technologies could lead to a decline in labor income, with the following key points highlighted:
  • AI could result in job displacement as automation reduces the demand for certain types of tasks and skills, potentially leading to reduced wages and job opportunities for workers.
  • Workers may face challenges in adapting to rapidly evolving technology, requiring upskilling and reskilling to remain employable, which can be costly and time-consuming.
  • Increased inequality could arise as those with the necessary skills to work alongside AI systems may benefit disproportionately, while others are left behind.
  • Policies are needed to ensure inclusive growth, focusing on promoting lifelong learning, social protection, and labor market institutions that support workers in the AI era.
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