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The impact of AI on the labour market

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"Technology has a long history of profoundly reshaping the world of work. From the dawn of the agricultural revolution to the digital age, each wave of innovation has redefined the structure, nature and dynamics of labour markets.
Today, the world is on the brink of another technological revolution, enabled by artificial intelligence, that has the potential to reshape the world of work yet again. This coming wave is likely to arrive more quickly than its
predecessors, given the pace of technological adoption has been accelerating and because AI itself is advancing so quickly. Policymakers need to prepare now to ensure their workers and labour markets are equipped to ride the coming wave and benefit from it.
In this report we use novel analysis to explore how AI could affect the labour market, with specific reference to the United Kingdom. Although much discussion of AI is currently based around large language models (LLMs), this is part of a broader story about automation, which takes in physical tasks as well as cognitive ones. Our study therefore aims to take a wider view that incorporates a broader definition of AI, including AI-enabled hardware, and that examines three key ways that AI could affect the labour market: through demand, supply and by changing the workplace experience"

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