Artificial intelligence (AI)1 is reshaping economies and societies, much like transformative technologies such as the steam engine and electricity did in earlier generations. As a general-purpose technology, AI has the potential to boost productivity, drive economic growth, create new jobs and enhance the work of people (Calvino, Haerle and Liu, 2025[1]). At the same time, AI raises the risk of job displacement and widening existing disparities if the transition to using it is not managed effectively (OECD, 2023[2]).
The impact of AI on jobs varies across sectors, occupations and skills. Some workers benefit from AI’s ability to automate routine tasks (e.g. reducing the time to accomplish tasks with the same or even higher quality), allowing them to focus on higher-value tasks that cannot yet be automated. In other cases, AI may replace jobs entirely, particularly those involving a high degree of predictable and repetitive tasks. Importantly, the widespread availability of generative AI (GenAI) tools may considerably alter the way in which workers undertake different tasks. Having the skills to adapt to changing tasks and jobs is a crucial element of being able to thrive in the world of work in the AI age. With the right skills, workers stand to benefit from emerging job opportunities created by AI, provided the risks are addressed in tandem.
In such a heavily data-driven world, the pace of technological change is fast and often disruptive. In this context, policymakers have a responsibility to help equip workers with the skills needed to thrive in their jobs and in society more broadly. This paper first sheds light on the transformative impact of AI on businesses, work and digital societies. It then outlines the skills needed to prosper in the AI age. Finally, it discusses the role of policies to help ensure that workers have the right mix of skills today and in the future.