AI and the labour market: opening the black box

This work aims at discussing some of the main (open) questions about the labour impact of AI technologies. First, we provide an in-depth literature review focusing on concepts and measurement approaches and distinguishing between up (invention and knowledge creation), mid (technological innovation and development) and downstream (adoption and diffusion) components of the AI value chain. Second, we summarise the six articles included in the Special Issue ‘AI and labor markets: opening the black box’, distinguishing between contributions focusing on AI exposure, occupations and skill demand; the relationship between AI and automation technologies and their impact on income distribution; and, finally, the effect on organisational structures, management practices, and power dynamics within workplaces. Our analysis emphasises that AI’s employment effects are neither predetermined nor uniform, but shaped by implementation contexts, organisational choices, and institutional frameworks. We find that heterogeneity matters at multiple levels—across countries, sectors, firms, and demographic groups—challenging deterministic narratives and highlighting the need for adaptive policy responses that recognise these asymmetries.