a new future of work the race to deploy ai

Core Insights - The report highlights the significant impact of AI and automation on labor markets in Europe and the United States, predicting a shift in demand towards high-skill professions while reducing demand for lower-skill jobs [12][13][24] - By 2030, it is estimated that up to 30% of current work hours could be automated, necessitating around 12 million occupational transitions in both Europe and the United States [12][66][77] - The need for a major skills upgrade is emphasized, with a rising demand for technological, social, and emotional skills, while traditional manual and cognitive skills stabilize [14][15][66] Labor Market Context - Labor shortages and a slowdown in productivity growth are pressing issues in both regions, exacerbated by an aging workforce and the impacts of the COVID-19 pandemic [12][24][26] - The pandemic has accelerated shifts in labor demand, with a notable increase in hybrid work and e-commerce, which are expected to persist [25][41] Occupational Transitions - Europe may require up to 12 million occupational transitions by 2030, which is double the pre-pandemic pace, while the U.S. transitions could align with historical norms [13][66][68] - The pace of occupational change is expected to be uneven, with Europe facing a potential doubling of transition rates compared to pre-pandemic levels [68][69] Skills Demand - There is a projected increase in demand for STEM and healthcare professionals, with expected growth rates of 17-30% in these sectors by 2030 [58][63] - Conversely, occupations in food services, production, and customer service are anticipated to decline, with potential job losses ranging from 300,000 to 5 million in Europe [59][63] Automation and AI Impact - The report indicates that by 2030, 27% of hours worked in Europe and 30% in the U.S. could be automated, driven by advancements in generative AI [77] - The potential for automation is expected to rise significantly by 2035, with projections of 45% in Europe and 48% in the U.S. [77] Productivity Growth - Embracing technology and proactive worker redeployment could lead to productivity growth rates of up to 3% annually in Europe through 2030, while slow adoption could limit growth to 0.3% [16][66] - The report underscores the importance of making strategic choices today to enhance productivity and societal outcomes in the future [16][37]