With artificial intelligence grabbing attention at the WEF annual meeting, a study on Friday said this new technology will certainly help economies grow but would require greater social security.
The study published by Credit Suisse Research Institute, which looked into the impact of artificial intelligence on the future of the labour market, found that contrary to popular belief, there will be no shortage of work in contemporary economies.
Rafael Lalive and Daniel Oesch, professors in economics and sociology respectively at the University of Lausanne, wrote: "Rather than a jobless economy, the two great challenges in the labor market may then be massive dislocation on the one hand and the distribution of productivity gains on the other."
"While technological change will not lead to the end of work, it will certainly displace people from occupations and sectors," the report said.
On the need for economic security in the gig economy, the study said the growing number of freelance workers replacing traditional employees provides much greater freedom, flexibility and control from self-employment, but it is imperative that these non-traditional workers have their rights and economic security protected.
Giuliano Bonoli, professor of social policy at University of Lausanne, said: "The idea that social protection needs to be adapted to the changing nature of work is now firmly embedded in public debates. The challenge before us is to preserve the high levels of social cohesion and economic security achieved in the past in this newly emerging economic and technological world."
On legal and ethical challenges posed by artificial intelligence, the report said we need to ensure that modern computer technology will improve the working world and ultimately benefit people of future generations.
Bettina Hummer, professor of social law and legal German, University of Lausanne, said: "Legislators must be aware of the complexities surrounding information technology and artificial intelligence and try to gauge their very 'nature' in order to define the aims that regulation should pursue."
Urs Rohner, Chairman of the Board of Directors of Credit Suisse Group and Chairman of the Credit Suisse Research Institute, said: "Big data and advances in computing power have triggered a technological revolution that have enormous bearing on the workplace and the labor market."
"Machines and robots are improving their capacities rapidly through artificial intelligence (AI) and innovations in design and structure. How businesses navigate these changes whilst ensuring clients are connected, empowered and protected will be both the challenge and opportunity ahead," he said.
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