As general-purpose technologies like the steam engine and electricity once revolutionised society, artificial intelligence (AI) is likewise doing so today. By enhancing productivity, stimulating economic growth and creating new job opportunities, AI could significantly enhance human work and the labour market. However, AI also presents challenges such as job displacements if the transition to using it is not properly managed. The effects of AI on employment differ across sectors, regions and cities, as well as across skill levels. Adapting to this shift requires developing new skills that align with evolving labour market demands. Policymakers play an essential role in ensuring workers are equipped to thrive in an AI-driven economy. This paper examines how AI is transforming labour markets, shifting skill requirements and the policy responses needed to harness AI’s transformative potential while mitigating its social and economic risks.
The ongoing digital transformation of the economy and society holds many promises to spur innovation, generate efficiencies and improve services, and in doing so boost growth. Digital technologies empower people by increasing access to information and enabling new forms of social engagement. Yet such benefits come with other challenges as digital transformation changes the nature and structure of organisations, markets and communities, and raises concerns about equity and inclusion. Realising the opportunities and addressing the challenges is not automatic and may require policy action to make digital transformation boost growth and improve well-being.
The OECD-Korea Digital Society Initiative (DSI), under the auspices of the OECD Digital Policy Committee (DPC) and supported by Korea, aims to help advance the DPC’s work on the societal aspects of digital transformation, including its implications for human rights, by integrating relevant expertise from across the DPC and its data infrastructures. The DSI provides insights into the impacts of digital transformation and digital technology development on society, and a venue for countries to discuss, exchange and explore policy case studies on related issues. The DSI focuses on three priority areas: digital inclusion and divides; safety; and trust. These themes were chosen as key areas to advance individual and societal well-being in today’s highly digital societies.
This paper represents an output of the DSI. It contributes to a better understanding of key trends in the digital transformation of societies across OECD Member countries and partner economies and it identifies innovative policy practices to maximise the opportunities of digital technologies for people and society and to minimise the related risks.
This paper was written by Elif Köksal-Oudot under the guidance of Molly Lesher and the direction of Audrey Plonk and Jerry Sheehan. Statistical expertise from Giorgia Bergamo and Bénédicte Rispal is gratefully acknowledged. The paper benefited from feedback from Stijn Broecke, Andrew Paterson, Glenda Quintini, Angelica Salvi Del Pero and Lea Samek. Mark Foss, Andreia Furtado and Alice Weber provided editorial and communication support.
This report uses ISO codes for countries and economies in figures.