Artificial intelligence

In the world of work, there are two distinct types of application of AI technology in the workplace. The first is directed at automating tasks that workers perform; the second is to use AI-based analytics and algorithms to automate managerial functions – or what is commonly referred to as “algorithmic management”.

When AI is used to automate tasks, it doesn’t necessarily lead to redundancies, as the technology can also complement human labour when certain tasks are automated. Whether technological adoption leads to automation (job loss) or augmentation (job complementarity) depends on the centrality of the automated task to the occupation, how the technology is integrated into work processes and management’s desire to retain humans to perform or oversee some of the tasks, despite automation’s potential.

In addition to the potential effects on workers, AI’s integration into the workplace can also have consequences for organizational performance, including productivity, with spillover effects on economic performance.  For this reason, unequal access to the technology stemming from infrastructure bottlenecks, skill deficiencies or simply the cost of the technology can widen existing productivity divides between countries as well as between large and small or micro enterprises.