The OECD expects that the 'AI Revolution' will reshape job markets in the world's wealthiest countries

The world's wealthiest nations must rapidly prepare for the consequences of an impending "AI revolution" that will transform occupations, create new ones, and eliminate others, according to the OECD.

The fast development of artificial intelligence, with tools that can make essays, create graphics, and even pass medical examinations, has generated fears that it may automate entire sectors of the labour.

According to the OECD's 2023 Employment Outlook, there is "so far" minimal indication of substantial negative consequences on employment from AI.

"While AI adoption remains relatively low, rapid progress, falling costs, and an increasing availability of workers with AI skills suggest that OECD economies may be on the verge of an AI revolution," according to the research.

According to the Organisation for Economic Cooperation and Development, "while there are many potential benefits from AI, there are also significant risks that must be addressed urgently."

The worldwide and powerful institution comprises 38 member nations, including Australia, the United Kingdom, Canada, Germany, Japan, Mexico, and the United States.

The OECD stated that greater data on AI adoption and use in the workplace is "vital," including "which jobs will change, be created, or disappear, and how skills needs are shifting."

According to Stefano Scarpetta, OECD director for employment, labour, and social affairs, AI adoption is largely concentrated in large enterprises that are still experimenting with the new technology, and many are reluctant to replace workers.

"However, it is also clear that the potential for substitution remains significant, raising fears of decreasing wages and job losses," he said in an editorial.

According to the OECD assessment, AI has the potential to enhance workplace safety by decreasing "tedious or dangerous tasks" and lead to greater earnings for individuals whose abilities match the technology.

However, it may "leave workers with a faster-paced work environment" and cut salaries for those "squeezed into a diminished share of tasks due to automation."

According to the OECD, jobs at the highest risk of automation account for 27 percent of employment when AI is considered.

"AI use also poses significant ethical challenges in terms of data protection and privacy, transparency and explainability, bias and discrimination, automatic decision making, and accountability," Scarpetta stated.

"Immediate action is required to ensure that AI is used responsibly and trustworthily in the workplace," he stated.

"On the one hand, there is a requirement to enable workers and employers to reap the benefits of AI while adapting to it, particularly through training and social dialogue."