Impact of Artificial Intelligence and Technology on Labour Relations
TL;DR
Policy recommendations highlight the need for investment in workforce development, strengthened labour protections, ethical guidelines for algorithmic use, and the promotion of social dialogue between employers, workers, and policymakers to balance efficiency with fairness.
Abstract
The rapid advancement of artificial intelligence (AI) and automation is transforming the global workforce, reshaping job structures, skill requirements, and labour relations. This study examines the impact of AI on employment dynamics, focusing on three critical areas: job displacement, evolving skill demands, and the changing role of human resource management (HRM). Evidence from existing literature indicates that while AI-driven technologies displace routine and repetitive jobs, they also generate new opportunities requiring hybrid competencies that combine technical expertise with social and cognitive skills. The transition, however, is uneven and heightens risks of inequality and structural unemployment for vulnerable workers. Furthermore, HRM functions are undergoing significant change as organizations integrate AI into recruitment, performance management, and training processes. The findings underscore the importance of continuous reskilling, ethical AI adoption, and inclusive labour policies to balance efficiency with fairness. Policy recommendations highlight the need for investment in workforce development, strengthened labour protections, ethical guidelines for algorithmic use, and the promotion of social dialogue between employers, workers, and policymakers. By addressing these challenges, organizations and societies can harness AI and automation as tools for shared prosperity rather than sources of exclusion