While firms’ adoption of AI is still relatively low, rapid technological progress, falling costs and the increasing availability of workers with AI skills suggest OECD countries may be on the cusp of an AI revolution. AI can bring many benefits to the workplace such as higher productivity, improved job quality and stronger occupational safety and health. However, there are risks too, such as automation, loss of agency, bias and discrimination, breaches of privacy and a lack of transparency. The OECD's research on the impact of AI on the labour market show the urgent need to act now, with policies that allow countries, firms and individuals to benefit from AI, while addressing risks.
AI and work
Rapid developments in artificial intelligence (AI) are beginning to have an impact on the world of work, with potentially far-reaching consequences for countries, firms and businesses. There is an urgent need for policies that allow everyone to benefit from these changes, while also addressing potential risks.
Key messages
New OECD surveys of employers and workers in the manufacturing and finance sectors of seven countries shed new light on the impact that Artificial Intelligence has on the workplace - an under-researched area to date due to lack of data. The findings suggest that both workers and their employers are generally very positive about the impact of AI on performance and working conditions. However, there are also concerns, including about job loss, an issue that should be closely monitored. The surveys also indicate that, while many workers trust their employers when it comes to the implementation of AI in the workplace, more can be done to improve trust. In particular, the surveys show that both training and worker consultation are associated with better outcomes for workers.
Algorithmic management – the use of software to fully or partially automate tasks traditionally carried out by human managers – has received increased attention in recent years. On the one hand, it has the potential to deliver productivity and efficiency gains as well as greater consistency and objectivity of managerial decisions within firms. On the other hand, there is growing evidence from other studies of its potential detrimental impacts on workers. It is urgent to examine policy gaps to ensure the trustworthy use of algorithmic management tools.
Context
Algorithmic management
Algorithmic management is the use of technological tools which may include artificial intelligence (AI), to fully or partially automate tasks traditionally carried out by human managers.
The prevalence of algorithmic management varies substantially across countries. In the United States, 90% of managers indicate that their firms provide at least one algorithmic management tool, while prevalence rates in European countries (France, Germany, Italy, and Spain) range between 76% (Italy) and 81% (France). The picture differs in Japan, where prevalence is more moderate.
The intensity of algorithmic management within firms also varies between countries. More than three-quarters of U.S. managers (76%) report that their firms provide ten or more of the 15 algorithmic management tools covered in the survey. In contrast, European firms are moderate adopters, most often providing between three and five algorithmic management tools. Finally, most Japanese firms (29%) provide only one algorithmic management tool.
AI, job quality and inclusiveness
Workers in the manufacturing and finance sectors who work with AI tend to be positive about its impact on performance and working conditions. 4 in 5 workers say AI improved their performance and 3 in 5 said it increased their enjoyment in work. Workers are generally very positive also about the impact of AI on physical and mental health.
Employers also said that older workers and the low-skilled are considered at greater risk from AI, while people with disability were considered a group that could benefit most. In particular, AI has the potential to create more inclusive and accommodating environments and might help remove some of the barriers faced by people with disability in the labour market, although there are plenty of obstacles hindering the development and use of such technologies.
AI privacy and data collection in the workplace
Most workers who reported AI-related data collection expressed worries about data collection. In the finance and manufacturing sectors, 62% and 56% said that they felt increased pressure to perform at work due to data collection, while 62% and 51% expressed worries regarding their privacy. A majority also said that they worried too much of their data was being collected (58% and 54%) and that data collection would lead to decisions biased against them (58% and 51%).
