AI and the Future of Work: OECD Report Explores Generative AI’s Impact on Jobs

The OECD report, “Job Creation and Local Economic Development 2024,” highlights that generative artificial intelligence (AI) is now capable of performing complex, non-routine cognitive tasks traditionally reserved for highly skilled professionals. Previously, AI was primarily utilized for automating routine and low-skilled activities, such as data processing. However, its influence has expanded into domains such as education, finance, and IT. According to the report, generative AI already impacts approximately one-quarter of all jobs.

Labor markets in OECD countries face numerous challenges, including an aging population, sluggish productivity growth, regional disparities, and workforce shortages. Despite record employment levels in 2023, significant regional disparities persist. On average, employment rates in the most prosperous regions are 10.5 percentage points higher than those in less developed areas. Furthermore, generational divides are deepening; younger individuals face greater difficulties entering the labor market, particularly in metropolitan areas. Labor productivity remains uneven as well, with leading regions maintaining a 50% advantage over others.

The OECD does not view AI as an immediate threat to employment. The report likens the technology to previous waves of automation, which, despite displacing certain jobs, ultimately contributed to overall job creation. Moreover, AI holds the potential to address skilled labor shortages by unlocking opportunities for individuals previously unable to access certain roles.

The report places particular emphasis on the need to develop policies that harness AI’s potential for regional growth. Priorities include raising awareness of technological benefits, supporting small businesses in adopting AI, managing associated risks, and providing targeted assistance to workers whose positions may be displaced by new technologies. Additionally, the importance of public-private collaboration is underscored, particularly in investing in workforce reskilling and safeguarding employee rights.

The report also cautions that generative AI could exacerbate regional disparities within OECD countries, as its effects are likely to be most pronounced in metropolitan areas and high-skilled industries.