Impact on labor markets (job loss and displacement)
Currently, a significant share of workers (three in five) worry about losing their jobs entirely to AI in the next 10 years—particularly those who already work with AI. Some studies conclude that AI tools (generative and non-generative) will create significant job losses.573 The OECD has found that occupations at highest risk of being lost to automation from AI account for about 27% of employment.5
ENTITY
2 - AI
INTENT
2 - Unintentional
TIMING
3 - Other
Risk ID
mit751
Domain lineage
6. Socioeconomic and Environmental
6.2 > Increased inequality and decline in employment quality
Mitigation strategy
1. Systemic Employer Investment in Human Capital Mandate or significantly incentivize firm-led upskilling and reskilling programs, potentially via expanded tax credits or full and immediate expensing for job-related training, to facilitate the transition of existing employees into roles that emphasize human-AI complementarity. This directly addresses the market failure of firms underinvesting in general, portable skills. 2. Enhancement of Workforce Transition Safety Nets Modernize and expand legislation, such as the Worker Adjustment and Retraining Notification (WARN) Act, to mandate longer notice periods for AI-driven displacement and require employer contributions toward a universal fund for retraining and portable benefits, thereby mitigating the financial and emotional toll of job churn. 3. Educational Reform for AI-Adaptability Integrate curriculum updates that focus on cultivating critical thinking, ethical reasoning, and domain expertise—skills less susceptible to immediate automation—to prepare the future workforce for human-AI collaboration and mitigate the disruptive impact of AI on traditional career pathways and entry-level positions.