The Bank of Israel published a research box for its forthcoming Annual Report for 2024 assessing how generative artificial intelligence (generative AI) is expected to affect employees and the labour market, and the implications for labour market policy. It highlights the need for the state to ensure access to appropriate training, both for workers in jobs that AI may replace and for employees in roles where AI will complement human labour. The analysis expects the largest effects in occupations involving repetitive thinking tasks, while impacts on mainly physical or technical work should be more moderate unless generative AI is integrated into robots. In the public sector, around two-thirds of employees work in professions where generative AI could be complementary, implying a need for technological upgrades, employee training, and updates to labour agreements and regulations. In high-tech, generative AI is expected to create new demand but also reduce the need for many technological professions by replacing tasks, requiring affected workers to update their knowledge and adapt to changing market demands.
Bank of Israel 2025-03-26
Bank of Israel research assesses generative artificial intelligence’s labour market impact and calls for training and retraining policy
The Bank of Israel's 2024 Annual Report examines generative AI's impact on the labor market, emphasizing state-facilitated training for workers affected by AI. It anticipates significant effects on repetitive thinking tasks, moderate impacts on physical or technical work, and highlights the need for technological upgrades and training in the public sector and high-tech industries.