OECD Reviews AI Labour Market Policies Across Key Economies

The OECD has published a comprehensive 64-page analysis of AI labour market policy developments in G7 countries, the European Union, and selected Latin American economies. Published as OECD Artificial Intelligence Papers, No. 63, on 24 July 2026, the paper reviews policy measures across six key areas: automation, productivity, skills and inclusiveness; privacy and data protection; non-discrimination; occupational safety and health; transparency, explainability and accountability; and social dialogue.

Existing Frameworks Dominate AI Labour Policy

A critical finding from the OECD review is that across most policy areas examined, AI-related labour market issues are primarily addressed through existing labour market policy frameworks rather than through stand-alone AI policies. This suggests governments are adapting traditional labour protections to cover AI risks rather than building entirely new regulatory structures.

Skills Policies Lead, Others Still Emerging

The OECD found that policies explicitly targeted at AI in the labour market are most developed for AI skills and adoption. However, measures and guidance are still emerging in other policy areas, particularly privacy, transparency, and accountability—areas of particular interest to EU regulators working under frameworks like the AI Act.

No Evidence of Widespread Job Losses from Generative AI

Meanwhile, research from the Bipartisan Policy Center and Brookings Institution reports that there is currently no evidence of widespread job loss caused by generative AI, even in jobs that have seen the greatest use of AI.

In fact, real-world salary data contradicts earlier predictions of AI-driven displacement. In 2025, radiology was the second-highest-paid medical specialty in the U.S., with average salaries nearly 50% higher than in 2015, despite predictions a decade earlier that AI would replace radiologists.

AI Creating New Jobs, Boosting Productivity

LinkedIn data cited by the World Economic Forum in January 2026 showed AI has already added 1.3 million new jobs globally. A Federal Reserve Bank of St. Louis study found that generative AI saves workers a little over two hours per work week on average, rising to at least four hours per work week for workers who used the technology more often.

Small Business Adoption Rapid but Uneven

According to a Goldman Sachs survey from March 2026, more than three quarters of small businesses are already using AI in some way, with 93% of those using it reporting a positive business impact, most commonly through increased efficiency and productivity.

However, adoption remains incomplete. Only 14% of small businesses have fully embedded AI into core operations, with many citing lack of technical expertise, implementation support, and cost as key barriers.

Source: OECD