Title: The impact of artificial intelligence on the labour market: economic analysis, reducing the competence gap and providing labour law protection (V5-2267)
Head of the research team: izr. prof. dr. Valentina Franca
The research project answers the question of labour market transformation due to the introduction of Al which includes identifying the impact of the Al in business processes, the gap between competencies needed in labour market the next decade dues to Al. Examining new business models in the context of gig economy and the specifics of jobs of ensuring adequate working conditions and labour rights due to Al technologies in business processes. From the perspective of productivity growth and prosperity, understanding the motives and challenges of using Al technologies in companies’ business processes and complementary investments in workers’ competencies is important for economic, social and legal policymakers.
The main objectives of the project are:
1. analysing the impact and consequences of Al technologies in different sectors, identifying the consequences at industries and individual occupations levels;
2. analysis current and future needs in Slovenia in terms of competencies in companies for Al and analysis of employment of graduates by educational sector and gender, as well as analysis of enrolment in programs that enable the acquisition of digital competences required for Al;
3. identification and analysis of new forms of work based on the gig economy, which operates on the basis of Al algorithms, and their impact on the labour market, labour rights, working conditions and organizations;
4. analysing the factors of company level (especially those operating with IT) that influence the speed of restructuring and new competencies.
The final results of the project will provide a comprehensive understanding of the impact of Al on the labour market based on a variety of research approaches and data. The results will include an analysis of the impact and consequences of the adoption of Al at the level of individual industries, companies and occupations. Comprehensive data-driven recommendations for the formulation of economic and legal policies will be developed, incorporating different areas and taking into account the complexity of the issue and the interconnection between development policy, education policy, labour market, social systems. Important outcome of the project will be recommendations on how to encourage companies to take a proactive approach to developing key competencies for use of Al.
Duration (from/to):
1. 10. 2022 – 30. 9. 2024
Contracting Authority:
Slovenian Research and Innovation Agency & Ministry of Digital Transformation
Financing:
The project is being financed with 765 yearly hours (B price category) for 2 years.
Project phases and their realization
Working Package 1: Theoretical Foundations and Problem Definition of the Impact of Artificial Intelligence on the Labor Market
Within the framework of the first working package, our aim is to formulate theoretical foundations and define problems related to the consequences of AI perceived in the labor market, particularly in new ways of work based on the gig economy. This will serve as a basis for further working packages and empirical analysis.
The first working package will encompass four sub-packages:
1.1 Theoretical foundations based on a review of relevant foreign and domestic economic, legal, and other pertinent literature and sources concerning the introduction of AI into the labor market, its existing and anticipated consequences in employment relationships, and in new modes of work, especially platform work.
1.2 Presentation of the consequences of AI implementation, highlighting positive and negative effects on the labor market, and defining industries where this influence is more pronounced. Based on scientific and professional literature, a review will be prepared on the use of AI and other ICT technologies across different economic sectors in Slovenia and abroad, summarizing empirical findings regarding the labor market at the industry level.
1.3 Overview of the current state of the labor market in industries, occupational groups, and job positions in Slovenia concerning the need for various levels of knowledge and competencies in the field of ICT, compared with the EU 27 countries. This includes assessing differences in the use of ICT technologies and the resulting structure of workers at different levels of knowledge and ICT competencies.
1.4 Review of literature and preparation of theoretical foundations to identify the need for new knowledge and competencies required for future work facilitated by AI solutions. Based on scientific and professional literature, key digital, technical, soft, and specific competencies for each industry will be defined.
Working Package 2: Legal Analysis of International, European, and National Legal Frameworks
The second working package aims to identify and analyze fundamental legal principles essential for regulating the opportunities and risks brought by AI in employment relationships and other modes of work based on the gig economy, especially platform work.
2.1 Analysis of international and European legal acts and fundamental documents of international organizations, particularly the United Nations, Council of Europe, International Labour Organization, and the European Union.
2.2 Analysis of national legislation and fundamental documents.
2.3 Analysis of selected cases of foreign and European case law, especially regarding disputes related to platform work, aimed at identifying risk factors for more effective legal regulation.
2.4 Identification and definition of risks in the introduction of AI into employment relationships and the emergence of new modes of work based on the gig economy.
2.5 Identification and definition of new modes of work based on the gig economy and labor law analysis of the position of platform workers in national legislation.
Working Package 3: Identification of Key Technologies and Analysis of the Consequences of Introducing AI and Related ICT Technologies on Employment at the Industry and Individual Occupational Levels
From the project’s perspective, the focus of the empirical analysis in the third working package will cover three sub-packages:
3.1 Identification of industries where the use of AI and other new ICT technologies will require significant adjustments in terms of workers’ knowledge and ICT skills.
3.2 Detailed analysis of the impact of AI implementation and other new ICT technologies on professions, including an analysis of the occupational structure (based on the ISCO classification) in Slovenian companies today and an analysis of the dynamics of changes over the past 20 years.
3.3 Analysis of graduates’ employment based on their field of education and gender, enrollment analysis in programs enabling the acquisition of digital competencies, and other competencies necessary for AI adaptation, aligning study programs with future labor market needs.
Working Package 4: Analysis of AI and Similar ICT Technology Usage and the Need for Knowledge and Competencies in the Field of AI in Slovenia
Within the fourth working package, the following tasks, structured into four sub-packages, will be carried out:
4.1 Analysis of AI and new ICT technology usage in Slovenian companies and its impact on innovation (speed of introducing new products and improvements in production processes).
4.2 Analysis of the intensity of investments in Slovenian companies concerning the adoption of new technologies and complementary investments in soft factors.
4.3 Analysis of training in companies and the need for competencies based on age and gender.
4.4 Analysis of companies’ demand for platform work, examining motivations, advantages, and disadvantages.
Working Package 5: Proposals and Recommendations for Legislative Changes and Other Measures
The goal of the fifth working package, using a multidisciplinary approach involving legal, economic, and technological aspects, is to formulate proposals and recommendations for legislative and other regulatory changes, policy-making at national, sectoral, and entrepreneurial levels to address the opportunities and challenges posed by AI in the labor market. Additionally, dissemination activities will be included in the fifth working package, starting from the third quarter onwards but intensifying in the last four quarters.
Realization until May 10, 2023: Working Packages 1 and 2 have been fully realized.
The first three phases were fully completed by May 10, 2023.