AI and Welfare States: Curse, Solutions or Both?

This chapter discusses the impact of artificial intelligence (AI) on welfare states by delving deeper into a number of elements that may influence this development. AI will influence not only the number of jobs, but also change qualifications needed in several jobs. This indicates that most people will likely need life-long learning in order to keep a position on the labour market. AI implies higher risk for some by the possible increase in platform work and the related risk for wage earners with regard hereto. Moreover, for some jobs the working week and working conditions may change as a result of the new technology, whereas it is less likely to do so in other professions (such as services and care). This was already seen in several jobs during the COVID-19 pandemic, although whether this will continue is still open for debates. How this can increase or decrease the number and differences in the types of jobs in the labour force is also an open question. AI might make administration easier, but it also implies a risk of bias for those in need of these services. As an example, the impact of the support from the labour market policy will be used. Overall, AI implies new options, but also new risks, which the welfare state may help mitigate.