ILO urges employers to share AI's productivity gains with employees

ILO director-general calls for a human-centred approach to AI transformation at work

ILO urges employers to share AI's productivity gains with employees

International Labour Organisation (ILO) Director-General Gilbert F. Houngbo has called on employers to share the gains from artificial intelligence with employees, as he pushed for a human-centred approach to AI transformation at work.

Houngbo, in his opening address at the 114th International Labour Conference, said workers everywhere must be able to share the productivity gains generated by AI.

"Those gains must be distributed fairly through better wages, stronger labour protections and more inclusive growth," the ILO director-general said.

"Collective bargaining will remain essential, alongside AI governance grounded in transparency, accountability, and human oversight."

Sharing AI gains

Houngbo's remarks come in the wake of growing workforce unrest as their organisations adopt AI, with employee concerns ranging from data privacy to job insecurity.

In South Korea, Samsung Electronics nearly faced a historic industrial action from two of its biggest unions who demanded better compensation as the tech giant saw soaring profits amid a spike in demand for memory chips due to widespread AI adoption.

In other parts of the world, there is also growing job insecurity among the workforce as AI tools take over some of their tasks and put them at risk of being made redundant.

Houngbo, citing a report he presented in May, stressed that the future of work will be guided by policies and institutions as AI reshapes work at an unprecedented scale.

"The central message is quite clear: the future of work will not be determined by technology alone, but by the policies, institutions, and social dialogue that guide it," he said.

"The choices we make today will determine whether AI broadens opportunity and shared prosperity or deepens inequality and insecurity.

"Such choices include: investing in skills, strengthening labour and social protection, supporting micro, small, and medium enterprises and upholding fundamental principles and rights at work. This is ultimately a social and political choice about the future we want."

AI risks deepening inequality

Meanwhile, the ILO director-general also highlighted that countries at different levels of development must not be left behind.

"They should be able to benefit from AI as a driver of convergence, job creation, structural transformation, and decent work," he said.

A report from the ILO in 2024 warned of an emerging "AI divide" across the world that could potentially worsen existing disparities in income and quality of life.

According to the report, the uneven implementation of AI tools will disproportionately benefit AI advancement, and leave behind low- and middle-income countries.

"This is why my report proposes a strategic agenda built around four pillars: rights, employment, skills, social protection and social dialogue," Houngbo said.

The ILO official said he hopes the two-week international conference will provide an opportunity for delegates to share experiences and learn from each other on the ongoing AI transformation.

"Through our discussions, we can help chart a common path forward that harnesses the potential of AI while ensuring that innovation advances decent work, inclusion and social justice," he added.

The 114th International Labour Conference gathers representatives from governments, employers, and workers for a two-week event that will run until 12 June.

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