Inter-Agency Working Group (IAG) Workshop on the Trends and Impact of AI in the labour markets

Although AI technologies have only recently emerged, they are significantly transforming labour markets. The wide range of AI technologies makes it difficult to determine their exact impact, as different AI tools influence workers differently. Many reports exist to explore AI's trends, applications, and effects on labour markets,1 but they primarily concentrate on developed economies. Moreover, AI's role in labour markets is continuously evolving with new advancements occurring regularly, while concrete evidence from actual AI implementations remains limited.

ETF has begun an activity focused on the impact of AI in labour markets to:
• develop an 'AI Virtual Assistant' to conduct literature reviews and collect and analyse relevant content information and data;
• produce an 'analytical report on the trends and impacts of AI in global labour markets' from the perspective of developing countries, utilizing both the AI Virtual Assistant and human inputs;
• draft a short reflection paper on AI-related skills demand identified in the literature, with implications for ETF Partner Countries.
 

As the chair of the Inter-Agency Working Group 1 (IAG) on skills mismatch during 2024-2025, ETF consulted and regularly updated the IAG members on the progress in periodic meetings, including an online presentation of the AI Virtual Assistant concept on 29.11.2024. The IAG workshop in Turin will enable high-level expert exchanges on the topic among the participants, based on the results of three ETF outputs listed above. 

The specific objectives of the workshop are:
• Present and discuss ETF study results on AI's impact on labour markets in developing countries, seeking the feedback from IAG members for finalisation;
• Initiate a detailed discussion and exchange on the skill demands emerging from various AI applications, focusing on both technical and non-technical skill sets;
• Review and evaluate the generative AI tool's effectiveness in literature review processes to identify areas for improvement.

The outcomes of the workshop are expected to assist the IAG working group in advancing their collaborative efforts and cooperation. This includes exploring opportunities for further collaborative research, if required, and drafting a joint IAG paper on 'the skills demand emerging from diverse AI applications in the labour markets of both developed and developing economies.