Geneva, Switzerland — The trajectory of the global workforce, profoundly reshaped by the accelerating pace of artificial intelligence, will ultimately hinge not on technological prowess alone, but on the deliberate policies, robust institutions, and meaningful social dialogue that guide its integration. This was the emphatic declaration from Gilbert Houngbo, Director-General of the International Labour Organization (ILO), as he opened this year’s International Labour Conference (ILC) in Geneva. His address served as a powerful call to action for employers, governments, and worker organizations worldwide to prioritize a human-centred approach amidst the AI revolution, recognizing that the stakes involve nothing less than the quality of work and the future of decent employment for billions.
A Gathering of Global Labour Leaders: The International Labour Conference
The International Labour Conference (ILC), often referred to as the "world parliament of labour," is the highest decision-making body of the ILO. Established in 1919 by the Treaty of Versailles, the ILO is the only tripartite UN agency, bringing together governments, employers, and workers from 187 member states. This unique structure ensures that international labour standards, policies, and programmes reflect the diverse perspectives of those directly involved in the world of work. Each year, delegates converge in Geneva to discuss pressing issues, adopt new international labour standards, and set the strategic direction for the Organization. The 112th session of the ILC in June 2024, under Houngbo’s leadership, prominently featured the transformative, yet often disquieting, influence of artificial intelligence on employment, skills, and social protection. The timing of the conference underscored the urgency of these discussions, as AI’s capabilities continue to expand at an unprecedented rate, permeating every sector of the global economy.
The Unfolding Crisis: Pre-Existing Challenges Amplified by AI
Houngbo’s opening remarks painted a stark picture of a "crisis unfolding" within global labour markets, characterized by a persistent decline in job quality and an alarming prevalence of informality. He highlighted that over 2.1 billion workers, representing more than 60% of the global workforce, are trapped in informal employment, often lacking basic labour protections, social security, and decent working conditions. This staggering figure underscores a long-standing structural challenge that AI now threatens to either exacerbate or, if managed correctly, help alleviate. The transition from informal to formal, higher-quality employment has demonstrably slowed in recent years, leaving vast segments of the population vulnerable to economic shocks and technological disruptions. This pre-existing vulnerability forms the critical backdrop against which the AI revolution is unfolding, raising concerns about potential widening inequalities and a further erosion of worker rights if not proactively addressed.
Indeed, the ILO’s latest estimates reveal a concerning trajectory for global hours worked. Driven by a combination of global economic uncertainty and the rapid deployment of AI, the equivalent of 14 million full-time jobs could be lost this year, with an additional 38 million full-time jobs potentially disappearing next year. While these are aggregate figures that mask complex shifts in job creation and displacement, they signal a significant structural adjustment that demands urgent attention from policymakers and social partners.
AI’s Reshaping Influence: An Unprecedented Transformation
The ILO Director-General emphasized that artificial intelligence is ushering in a "transformation of a different order," fundamentally reshaping how work is organized, how value is created, and how decisions are made across industries, all at an unprecedented speed and scale. This sentiment resonates with findings from other major research bodies. A recent report from WTW, a leading global advisory, broking, and solutions company, indicates that a significant majority of employers — 59% — anticipate AI will "fundamentally" alter how employees experience the workplace within the next three years. This widespread expectation among employers underscores the inevitability of change and the urgent need for strategic planning and adaptation.
The ILO’s latest flagship report, titled "A Moment of Choice: Harnessing Artificial Intelligence for Decent Work," served as a central reference point for Houngbo’s address. This comprehensive study delves into the multifaceted impacts of AI on the world of work and provides a roadmap for employers, governments, and worker organizations to support a human-centred transition. The report unequivocally states that the future of work is not predetermined by technology alone; rather, it will be shaped by the collective decisions made today regarding governance frameworks, social protections, and the role of dialogue.
Disproportionate Impacts: Women, Youth, and the HR Function
One of the most concerning findings highlighted by the ILO report is the potential for AI capabilities, when fully deployed, to disproportionately affect women’s employment more than men’s. This disparity is rooted in existing occupational segregation, where women are often overrepresented in administrative, clerical, and service roles that are highly susceptible to automation. For instance, data from the World Economic Forum’s Future of Jobs Report (2023) indicates that analytical thinking and creative thinking are among the fastest-growing core skills, while roles involving data entry, administrative assistance, and accounting are seeing significant declines. If women are concentrated in the latter, their vulnerability to AI-driven displacement increases, potentially reversing decades of progress towards gender equality in the workforce.
Beyond gender, the report also raises critical concerns about the impact on career development for younger workers. As AI systems become more integrated into daily operations, there is a risk that entry-level positions, traditionally crucial for on-the-job training and skill acquisition, may be automated or streamlined. This could lead to a generation of workers with less exposure to foundational learning experiences, potentially hindering their long-term career progression and skill development. The informal learning and mentorship opportunities that often characterize early career stages could diminish, creating a skills gap that AI itself might not fully address without deliberate intervention.
The human resources (HR) function itself is identified as one of the most significantly impacted areas within the workplace. AI systems are increasingly being deployed across various HR domains, including recruitment, compensation, scheduling, and performance management. While AI offers promises of enhanced efficiency, reduced bias (in theory), and data-driven decision-making, its rapid adoption has not always been accompanied by a thorough assessment of associated risks – be they legal, ethical, or organizational. The ILO warns against prioritizing mere efficiency over objectivity and fairness, emphasizing that algorithms can embed and even amplify existing biases if not carefully designed, tested, and audited. For example, AI-powered recruitment tools might inadvertently discriminate based on patterns learned from historical data, perpetuating past inequalities. Similarly, performance tracking systems could lead to increased surveillance and pressure on workers, impacting their well-being and autonomy.
Navigating the Ethical Minefield: Transparency and Accountability
The ILO’s concerns extend to the lack of transparency surrounding how data is used by AI systems and how outputs are tracked and interpreted. This opacity creates challenges for accountability and due process, particularly when AI-driven decisions impact employment, promotions, or disciplinary actions. Workers often have little insight into the criteria or algorithms influencing decisions that profoundly affect their livelihoods. This lack of transparency can erode trust, foster resentment, and make it difficult to challenge potentially unfair or biased outcomes.
Moreover, the report cautions against the rapid deployment of AI without rigorous risk assessments. Legal, ethical, and organizational implications are often overlooked in the race to adopt new technologies. This oversight can lead to unintended consequences, including violations of privacy, discrimination, and a diminished sense of agency for workers. The ILO stresses that while AI offers immense potential for productivity gains and innovation, these benefits must not come at the cost of fundamental worker rights and protections.
A Moment of Choice: Four Pillars for a Human-Centred AI Transition
Crucially, the ILO maintains that the negative impacts of AI are not predetermined. The future trajectory of labour markets in the age of AI will depend entirely on how these technologies are introduced, organized, and governed. This perspective shifts the focus from technological determinism to human agency and collective responsibility. To ensure that "good work" emerges from the AI revolution, the ILO report outlines four key policy pillars:
- Investing in Human Capabilities: This pillar emphasizes the critical need for massive, sustained investment in education, skills development, and lifelong learning. As AI automates routine tasks, the demand for complex problem-solving, critical thinking, creativity, and social-emotional skills will increase. Governments, employers, and educational institutions must collaborate to re-skill and upskill the workforce, ensuring that workers are equipped for new and evolving job roles. This includes accessible, affordable, and high-quality training programmes, as well as robust career guidance services.
- Strengthening Social Dialogue and Collective Bargaining: At the heart of the ILO’s mandate, this pillar advocates for strong social dialogue between governments, employers, and worker representatives. Collective bargaining, in particular, is seen as a vital mechanism for negotiating fair terms for AI adoption, ensuring that productivity gains are shared equitably, and addressing concerns related to job security, working conditions, and skills development. Through dialogue, stakeholders can co-create solutions that balance innovation with worker protection and well-being.
- Adapting Labour Law and Social Protection: Existing labour laws and social protection systems were largely designed for a pre-digital, industrial economy. This pillar calls for a fundamental review and adaptation of these frameworks to address the unique challenges posed by AI. This includes updating regulations on worker data privacy, algorithmic management, the right to disconnect, and ensuring that social security systems are robust enough to cover all workers, regardless of their employment status in the gig or platform economy. New forms of social protection, such as universal basic income or portable benefits, may need to be explored.
- Promoting International Cooperation: The global nature of AI development and deployment necessitates international collaboration. This pillar stresses the importance of harmonizing standards, sharing best practices, and coordinating policy responses across borders. International cooperation can help prevent a "race to the bottom" in labour standards and ensure that the benefits of AI are distributed more equitably across nations, particularly supporting developing economies in their transition.
Beyond the Conference: Implications and the Road Ahead
The discussions at the International Labour Conference, particularly those surrounding AI, carry profound implications for governments, businesses, and workers globally. For governments, the challenge lies in crafting agile regulatory frameworks that can keep pace with technological advancements without stifling innovation. This involves investing in public infrastructure for digital literacy, supporting research into the socio-economic impacts of AI, and strengthening social safety nets.
For businesses, the imperative is to move beyond mere efficiency gains and embrace ethical AI deployment strategies. This includes transparent data practices, bias mitigation in algorithms, and fostering a culture of continuous learning and adaptation for their workforce. Companies that prioritize a human-centred approach to AI are likely to build more resilient, engaged, and productive workforces in the long run. The WTW report, indicating that 59% of employers expect fundamental changes, suggests a broad awareness, but the quality of that change will depend on how these pillars are adopted.
For workers and their representatives, the focus must be on advocating for strong collective bargaining agreements that explicitly address AI’s impact on job design, skill requirements, and worker protections. This includes demanding access to training, negotiating fair shares of productivity gains through improved wages and conditions, and ensuring robust mechanisms for challenging algorithmic decisions. Trade unions and worker organizations play a crucial role in shaping the governance of AI in the workplace, ensuring that technology serves humanity, not the other way around.
As the International Labour Conference concludes, the message from the ILO is clear: the AI revolution presents a "moment of choice." The future of work, characterized by decent employment, inclusive growth, and social justice, is not a foregone conclusion but a deliberate outcome of the policies, institutions, and social dialogue implemented today. The global community stands at a crossroads, with the opportunity to harness artificial intelligence as a force for good, provided that people remain at the absolute centre of this transformative journey.
