The Second Great Disruption? Artificial Intelligence, Technological Unemployment, and Policies for a Resilient Workforce – A literature Review

Abstract

Artificial intelligence (AI) is becoming a general-purpose technology, like the steam engine or electrification. However, it is being used more quickly than ever before.   This makes it harder for businesses, workers, and governments to make changes in a short amount of time.   Public discourse typically depicts AI as a driver of extensive displacement; however, empirical evidence suggests a more intricate path.   AI is more likely to change how people do their jobs than to take away jobs altogether.  This is true in many countries and industries.   This article situates AI within the historical narrative of technological unemployment, incorporates recent data on exposure, skills demand, and job quality, and evaluates policy frameworks that can transform productivity potential into broadly shared advantages.   The International Labour Organization (ILO), the Organisation for Economic Co-operation and Development (OECD), the World Economic Forum (WEF), LinkedIn workforce analytics, and the McKinsey Global Institute all say that clerical work is where most people come into contact with AI.  A lot of workers say they are happier at work when they use AI, but not enough people have the right skills.   The study shows a "complement-then-substitute" path: AI improves human skills at first, but it could eventually replace some jobs without immediate retraining.   To keep inequality from getting worse, policy needs to make lifelong learning more common, protect workers, and encourage countries to work together..