The ILO urges governments and businesses to ensure AI-driven productivity gains improve workers’ wages, job quality, skills and social protection rather than increasing output alone.
Background
The International Labour Organization (ILO) is calling for policies that ensure productivity gains from artificial intelligence (AI) and other technological advances benefit workers, not just businesses.
In a statement published on 12 October 2026, ILO Director-General Gilbert F. Houngbo urged policymakers to promote stronger workers’ incomes, better working conditions and wider social protection. The statement was delivered in connection with the 2026 IMF and World Bank Group Annual Meetings.
The ILO warned that stable headline unemployment figures can hide deeper challenges, including weaker hiring, falling real incomes, persistent informal employment and declining job quality.
Why AI Productivity Gains May Not Reach Workers
According to the ILO, productivity growth does not automatically translate into higher wages or better living standards. The distribution of economic gains between businesses and workers plays a major role in determining who benefits.
The organisation highlighted several challenges:
- Unequal wage growth: Productivity gains are not consistently reflected in workers’ incomes.
- Market concentration: Dominant companies and limited employment choices can weaken workers’ bargaining power.
- Barriers facing small businesses: Small and medium-sized enterprises may lack sufficient access to finance, skills and digital technologies.
- Unequal access to AI: Workers and businesses in developing countries may face technology and connectivity barriers, potentially experiencing adjustment pressures before the benefits become widely available.
The ILO estimates that around one-quarter of global employment is in occupations exposed to generative AI. Evidence cited in its statement suggests AI is more likely to transform tasks and jobs than eliminate them on a large scale, although the costs and benefits may be distributed unevenly.
The organisation also noted that approximately 2.1 billion workers, representing around 58% of the global workforce, remain in informal employment.
What Governments and Businesses Can Do
The ILO identified several policy measures that could help ensure workers benefit from productivity growth.
These include protecting workers’ rights, strengthening collective bargaining, supporting adequately set minimum wages and promoting competition that expands employment opportunities.
The organisation also called for better access to finance, technology and training for small businesses. Investment in lifelong learning, social protection and active labour market policies can help workers and enterprises adapt to technological change.
International financial institutions, including the IMF and World Bank Group, were encouraged to give greater attention to job quality, wage distribution and labour market institutions when analysing economic performance and designing policies.
What This Means for the Future of Work
The ILO’s message is that technological progress should be measured not only by how much it increases output, but also by whether it improves people’s lives.
For workers, this means that successful adoption of AI should be accompanied by opportunities to develop new skills, earn better incomes and access more secure, productive employment.
For businesses, the challenge is to use technology to improve productivity while building a workforce that can adapt to changing demands. For developing countries, expanding access to digital infrastructure, finance and training will be important to avoid widening existing inequalities.
The ILO argues that productivity growth, decent work and social justice are interconnected foundations of resilient economies.
Read the original statement: Making productivity growth work for people — International Labour Organization.
Frequently Asked Questions
1. What is the ILO saying about AI and workers’ wages?
The ILO says that productivity gains generated by AI should be more widely shared so that workers benefit through better incomes, improved job quality and stronger social protection.
2. Will artificial intelligence eliminate jobs on a large scale?
The ILO states that available evidence suggests AI is more likely to transform tasks and jobs than eliminate them on a large scale. However, its effects may vary across occupations, countries and industries.
3. How many workers are in informal employment worldwide?
The ILO’s statement estimates that approximately 2.1 billion workers, or around 58% of the global workforce, remain in informal employment.
4. What policies does the ILO recommend?
The organisation highlights collective bargaining, adequate minimum wages, workers’ rights, competition policies, skills development, support for small businesses and sustainably financed social protection.
5. Why are developing countries particularly affected by AI-related challenges?
Some developing countries face limited access to reliable internet, computers, finance, digital infrastructure and technical training. As a result, workers may experience changes caused by AI before they can fully benefit from productivity improvements.
6. What role should businesses play in responsible AI adoption?
Businesses can help by investing in workers’ skills, improving access to technology, creating productive employment and ensuring that productivity improvements contribute to better working conditions and incomes.
Opportunities Feed Assessment
The ILO’s statement highlights an important issue for the future of work: AI adoption and productivity growth do not automatically guarantee better wages or employment conditions. Policies that support skills development, fair labour practices and wider access to technology will influence how workers and businesses benefit from these changes.
Disclaimer: Opportunities Feed shares employment, education and work-related news for informational purposes. This article summarises the ILO’s published statement and does not represent an official statement from the organisation.
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