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AI’s impact on the labour market

This report by the Tony Blair Institute for Global Change examines the transformative impact of artificial intelligence (AI) on the labour market, highlighting both opportunities and challenges. AI is expected to increase productivity by automating routine cognitive tasks, particularly in...

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This report by the Tony Blair Institute for Global Change examines the transformative impact of artificial intelligence (AI) on the labour market, highlighting both
opportunities and challenges. AI is expected to increase productivity by automating routine cognitive tasks, particularly in administrative and data-intensive industries, while having a lesser impact on roles requiring complex manual work. Although AI could displace millions of jobs over time, its adoption is also projected to create new employment opportunities and drive economic growth, with a strong likelihood of increasing a nation’s GDP over the next 30 years. The report outlines key policy recommendations to ensure AI benefits are widely shared, including promoting AI adoption, upgrading labour-market infrastructure, improving job quality and skills development, and engaging in forward-looking scenario planning. It argues that governments must act now to prepare for the AI-driven shift, ensuring workers can adapt and thrive in the evolving economy.

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