Colliding Worlds: An Aging Workforce, Artificial Intelligence, and the Impact on the Future of Work

Abstract

we work is changing rapidly. A myriad of changes are impacting the way we live, work, and retire: rapid globalization; the growth of middle-class populations; issues of gender, diversity, and inclusion; aging; technology; and new ways of working in the gig economy. Two trends, however, are unprecedented in their scope: widespread societal aging and the automation of work by intelligent technologies. Increased life expectancies and decreasing birth rates across the world mean working-age populations are shrinking in many major countries. In Japan, the proportion of the working-age population ages 50–64 is expected to reach 38 percent by 2030, while in the United Kingdom, the only growing labor pool is among those over 50. The rate and scale of automation is also increasing, with advances in machine learning impacting the way the world works and the skills required in the workforce. The confluence of these two trends will have a profound impact on the future of work, particularly for older working populations. As automation increasingly enables unprecedented levels of productivity, the capacity of organizations to invest in new revenue streams and new economies will expand. Investing in younger workers will become increasingly difficult as young populations shrink, but older workers in aging nations are increasingly willing and able to engage in meaningful work. The idea of retiring at 65 and completely exiting the workforce is no longer our reality. Several notable socioeconomic trends are at play making older workers more willing and able to work: