The rapid development of artificial intelligence has raised concerns that it could replace whole sectors of the workforce through automation

The OECD on Tuesday warned of an imminent “AI revolution” that will change jobs, create new ones, and make others disappear, and called on the world’s wealthiest nations to prepare urgently.

In its 2023 Employment Outlook, the Organization for Economic Cooperation and Development (OECD) said there was little evidence of significant negative effects on employment from AI “so far.”

“While the adoption of AI still remains relatively low, rapid progress, falling costs, and the increasing availability of workers with AI skills indicate that OECD economies might be on the brink of an AI revolution,” the report said.

“While there are many potential benefits from AI, there are also significant risks that need to be urgently addressed,” it added.

The rapid development of artificial intelligence has raised concerns that it could replace whole sectors of the workforce through automation.

It is “vital” to gather better data on AI uptake and use in the workplace, “including which jobs will change, be created or disappear, and how skills needs are shifting,” according to the OECD.

AI use is generally concentrated in large firms that are still experimenting with the new technology, and many appear reluctant to replace staff, said Stefano Scarpetta, OECD director for employment, labor, and social affairs.

“However, it is also clear that the potential for substitution remains significant, raising fears of decreasing wages and job losses,” he wrote in an editorial.

“The use of AI also comes with serious ethical challenges around data protection and privacy, transparency, and explainability, bias and discrimination, automatic decision making and accountability.”

“Urgent action is required to make sure AI is used responsibly and in a trustworthy way in the workplace,” Scarpetta urged.