AI is reshaping work more through job transformation than job loss, WSIS panel hears

AI is changing the world of work in more complex ways than simply replacing workers, according to experts speaking at the WSIS Forum 2026. Panellists from the International Labour Organization (ILO) and the International Telecommunication Union (ITU) argued that while AI will automate some tasks, its broader impact will be felt through changing job quality, workplace surveillance, recruitment practices and skills requirements, making human-centred policies essential to ensure workers benefit from the digital transition.

The discussion highlighted that governments, employers and workers all have a role in shaping the future of work, with speakers calling for stronger labour protections, social dialogue and investment in digital skills to prevent AI from deepening existing inequalities.

AI is changing tasks and working conditions more than eliminating jobs

Sher Verick, Head of the Employment Strategies Unit in the Employment Policy Department of the ILO, challenged the widespread narrative that AI will trigger mass unemployment. Presenting findings from the ILO’s AI exposure index, he said around one in four workers worldwide are exposed to AI, yet only 3.3% of global employment falls into occupations that are highly vulnerable to automation.

‘The focus shouldn’t only be on job losses,’ Verick argued, explaining that AI is transforming how work is organised rather than simply eliminating occupations. Jobs involving a diverse range of tasks are more likely to change than disappear, while new roles are already emerging across AI supply chains, including data annotation and other support functions.

He stressed that the most significant impact may be on job quality rather than job numbers. Automated recruitment systems, algorithmic task allocation and AI-driven performance monitoring are already reshaping working conditions across sectors, while productivity gains could eventually create new employment opportunities through wider economic growth.

Algorithmic management raises new concerns for workers

Uma Rani Amara, Senior Economist at the Research Department of the ILO, argued that the conversation about AI should extend well beyond generative AI tools such as ChatGPT to include the algorithmic management systems increasingly used across workplaces.

Drawing on examples from manufacturing and healthcare, she explained that AI-powered surveillance tools, CCTV systems and digital performance dashboards are allowing employers to monitor workers more closely than ever before. While companies often present these technologies as efficiency tools, she warned that they can increase workplace stress, intensify workloads and reduce workers’ autonomy.

In hospitals, digital workflow management systems may improve patient scheduling and resource allocation, but they also place nurses and doctors under greater pressure by increasing workload intensity and extending on-call responsibilities. Even commonly used tools such as messaging applications can create new privacy risks when sensitive information is shared outside secure systems.

Rani also drew attention to what she described as AI’s ‘invisible workforce’, the millions of people, largely based in the Global South, who label data, moderate content, and perform other essential tasks that allow AI systems to function.

‘We should stop calling it AI and start calling it ‘human-in-the-loop intelligence’,’ she said, arguing that AI’s apparent autonomy obscures the human labour underpinning every stage of its development.

She called for stronger protections for these workers through measures such as fair labour standards, mandatory disclosure of AI supply chains and certification systems showing where training data originates and under what working conditions it was produced.

Governments must shape the future of work

Juan Chacaltana, Senior Employment Policies Specialist at ILO, argued that technological change should not be viewed as an inevitable force to which societies simply adapt.

‘The future of work should be shaped through policy,’ he said, presenting findings from an ILO review of 75 employment policy documents that found governments increasingly integrating digital technologies into employment services, labour market information systems and skills programmes.

However, he cautioned against viewing digital tools as a solution in themselves. While technologies can help modernise public employment services and support labour market formalisation, they cannot replace traditional drivers of economic development such as productivity growth, investment and strong institutions.

Chacaltana also warned that governments should avoid using digital tools primarily for surveillance or enforcement. Instead, introducing digital identity systems, AI-assisted public services and labour market technologies should involve workers, employers and other stakeholders through meaningful social dialogue.

The discussion also highlighted groups facing particular risks during the AI transition. Rani warned that young workers could lose the entry-level jobs that traditionally provide experience and career progression, while women risk a ‘double whammy’ of displacement from automation alongside discrimination embedded in biassed AI recruitment systems. Older workers and people in informal employment could also face new forms of exclusion or reduced autonomy as algorithmic systems increasingly influence workplace decisions.

Skills and cooperation are key to an inclusive AI transition

Praachi Kumar, Capacity Development Officer at ITU, said demand for AI-related training has grown rapidly, with interest in AI courses through ITU Academy tripling over the past five years.

The Academy now serves more than 115,000 ICT professionals, the majority from developing countries, while ITU’s Digital Transformation Centres initiative has reached around 700,000 people in underserved communities through digital skills programmes.

Kumar said lifelong learning must remain human-centred, combining technical knowledge with practical experience and peer learning. She also highlighted new multilingual AI governance courses developed in partnership with UNESCO to help address widening skills gaps.

Throughout the discussion, speakers agreed that preparing workers for AI requires far more than technical training. They called for coordinated action across labour, education and technology ministries, alongside stronger partnerships between governments, employers, trade unions and international organisations.

Closing the session, moderator Maria Prieto Berhouet said the debate had consistently returned to one central principle: AI should serve people, not the other way around. Rather than allowing technological change to dictate the future of work, participants argued that governments and social partners must actively shape AI’s role so it enhances productivity while protecting workers’ rights, dignity and opportunities.

Track all key moments from the WSIS Forum 2026 on our dedicated WSIS page.

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UN pension fund case study highlights ServiceNow CRM rollout

An AI for Good Global Summit 2026 session will examine how the UN Joint Staff Pension Fund used AI and ServiceNow-based CRM tools to support digital services for more than 250,000 beneficiaries.

The session, titled How AI + ServiceNow powers UNJSPF for 250K+ beneficiaries, is scheduled for 7 July on the Solutions Stage.

According to the session description, the case study will focus on how AI and ServiceNow CRM were combined through NPSM, described as an AI-native platform built on ServiceNow.

Organisers say the implementation supported unified workflows, intelligent automation, improved visibility and a better user experience.

The session will also examine how the platform was designed to meet the security, scale and operational requirements of a UN system serving diverse stakeholders worldwide.

The case study is expected to offer lessons for nonprofits and humanitarian organisations seeking to move away from fragmented systems and simplify service delivery.

It will frame AI-enabled CRM and workflow automation as tools for reducing operational complexity and enabling organisations to allocate more resources to mission delivery.

Why does it matter?

The session shows how AI-enabled CRM and workflow tools are moving into large public-interest institutions, not only commercial customer service. For UN agencies, pension funds and nonprofits, the main question is whether such platforms can simplify operations while preserving security, accountability, data protection and reliable service delivery on a global scale. The case is useful, but it should be read as a platform case study rather than independent proof of measured impact.

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UK firms sign Cyber Resilience Pledge amid rising AI threats

The UK government has launched a voluntary Cyber Resilience Pledge, with more than 60 businesses and strategic government suppliers committing to strengthening their cyber defences.

Founding signatories include companies from retail, finance, media, technology and utilities, including M&S, Nationwide, ITV, Microsoft UK, Cloudflare, Deloitte, Accenture UK, Vodafone Group and VodafoneThree.

The pledge asks organisations to take three practical steps: make cybersecurity a board-level responsibility, register for the National Cyber Security Centre’s Early Warning service and take a risk-based approach to requiring Cyber Essentials certification across supply chains.

The government said the pledge is designed mainly for medium and large organisations, but is open to organisations of all sizes and sectors.

Signatories will be asked to publish a signed pledge letter and provide an annual update on progress.

The launch comes ahead of the government’s National Cyber Action Plan, which is expected to set out further cooperation with industry on cyber resilience in the AI era.

According to the government, cyberattacks cost UK organisations an estimated £14.7 billion a year, while the NCSC handled 204 nationally significant incidents in the year to September, up from 89 the previous year.

Officials also warned that AI is lowering barriers for attackers by helping them find software weaknesses, write exploit code and scale attacks more quickly.

Why does it matter?

The pledge elevates cyber resilience to board-level corporate governance, rather than treating it solely as an IT function. Its supply-chain focus is also important because major cyber incidents often spread through vendors, service providers and connected business partners. By linking the pledge to AI-enabled threats, the UK government is signalling that basic cyber hygiene, governance and supply-chain assurance remain essential even as attacks become faster and more automated.

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Japan to establish AI council to drive national AI adoption

Japan’s government has approved plans to establish a new council to accelerate AI adoption and review the legal frameworks governing its development and use. The initiative forms part of the country’s 2026 policy guidelines and reflects growing efforts to integrate AI into key sectors of the economy.

The new body will replace a digital administrative and fiscal reform council established under former Prime Minister Fumio Kishida. Authorities said it will lead to what they describe as an ‘AI transformation’, a broad effort to reshape public services, business processes and working practices through AI.

Japan sees AI as an important tool for addressing the challenges of an ageing population and a shrinking workforce. Priority areas include healthcare, elderly care, transportation, infrastructure, workplace productivity and public administration, alongside broader digitalisation measures such as expanding the use of electronic medical records.

Chief Cabinet Secretary Minoru Kihara said AI and digital technologies should reduce burdens on citizens and businesses while improving public services. The government said it intends to accelerate digital transformation as part of its broader programme of economic and administrative reform.

Why does it matter? 

Japan’s decision reflects how governments are increasingly embedding AI into long-term economic and public-sector strategies rather than treating it as a standalone technology initiative. For countries facing ageing populations and labour shortages, AI is becoming a key policy tool for sustaining productivity, modernising public services and addressing workforce constraints.

The new council also illustrates the growing convergence of AI policy and regulatory reform. By reviewing legal frameworks alongside promoting adoption, Japan is seeking to ensure that governance evolves in step with technological deployment, balancing innovation with public trust and accountability.

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OpenAI rolls out GPT-5.5 Instant Mini in ChatGPT

OpenAI has started rolling out GPT-5.5 Instant Mini in ChatGPT as the fallback model users reach after hitting GPT-5.5 Instant or Auto rate limits.

The model replaces GPT-5.3 Instant Mini in that fallback role.

Because GPT-5.5 Instant Mini is used only as a fallback model, it will not appear in the model picker.

OpenAI said the update does not affect the API or Codex.

According to the company’s release notes, GPT-5.5 Instant Mini performs better than GPT-5.3 Instant Mini at tracking evolving user intent, calibrating tone and avoiding repetitive or overly structured responses.

OpenAI also said testing showed stronger personalisation and fewer factual issues than the previous fallback model.

Why does it matter?

Fallback models shape the experience users receive when they hit rate limits, especially on high-demand ChatGPT plans. Improving that fallback path can make the transition less disruptive by preserving tone, context and reliability more effectively. The update also shows OpenAI refining its everyday model-routing infrastructure, not just the flagship models available in the picker.

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Germany reviews crypto tax rules in 2027 budget plan

Germany’s federal government has listed a possible adjustment to cryptocurrency taxation among consolidation measures for its 2027 budget framework.

The Federal Ministry of Finance said the 2027 budget plan and financial framework to 2030 require further measures to address remaining fiscal pressures.

The measures listed by the ministry include efficiency reforms, changes to social spending, new levies on plastic and sugar, adjustments to alcohol and tobacco taxes, and stronger action against financial and tax crime.

The same list also refers to an adjustment of cryptocurrency taxation, without specifying the exact reform under consideration.

Germany currently applies favourable tax treatment to private crypto holdings in many cases. Profits from private disposals can be taxable if crypto assets are sold within one year, whereas gains from longer-term holdings are generally treated more favourably under existing rules.

Any change could therefore draw attention from investors and the crypto industry, particularly if it affects long-term holding exemptions.

The proposal remains at the budget-planning stage. The government said the relevant ministries must make agreed consolidation measures ready for inclusion in draft legislation before the 2027 federal budget is finalised.

Why does it matter?

Germany’s reference to crypto taxation in the 2027 budget framework signals that digital assets are becoming part of mainstream fiscal policy, not only financial regulation. A change to the country’s favourable tax treatment for private crypto holdings could affect investors, platforms and Germany’s position in Europe’s digital asset market. However, the policy impact cannot be assessed fully until the government specifies which tax rules it wants to change.

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UK FCA review warns agentic AI could reshape retail finance

A new FCA-commissioned review has warned that agentic AI could reshape retail financial services by allowing consumers to delegate more financial decisions to autonomous tools.

The Mills Review examines how AI could transform retail finance by 2030 and beyond, including banking, payments, savings, investments, insurance and debt advice.

The review says AI is moving financial services from human-led and episodic activity towards services that are AI-enabled, continuous and delegated.

Over time, AI agents could help consumers manage finances, compare products, execute tasks and optimise financial choices within agreed limits.

The report says the shift could help address long-standing market problems, including advice gaps, low switching, financial exclusion and poor savings outcomes.

It also warns that greater autonomy will create new risks around consent, accountability, redress, market power, cyber threats and financial crime.

The review recommends that the FCA consider developing trusted frameworks for AI agent participation in financial services, including clearer expectations for identity, consent, control and liability.

It also calls for stronger AI-enabled supervision so the FCA can detect risks across firms, shared models, cloud platforms and data sources more quickly.

The report says human accountability must remain central, with firms remaining responsible for outcomes produced by AI systems.

Why does it matter?

The review points to a shift from AI as a financial services support tool to AI as an active participant in consumer finance. If agents begin comparing products, moving money, managing portfolios or taking out insurance within delegated limits, regulators will need clearer rules on consent, liability, identity, redress and oversight. The report also raises a broader infrastructure question: agentic finance will depend not only on AI models, but also on trusted data access, digital identity, payments systems and supervisory tools that can detect risks across the market.

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UK launches toy safety review as AI-enabled toys emerge

The UK government has launched a Call for Evidence on toy safety, including whether existing rules remain suitable as AI-enabled toys and online shopping create new risks for children.

The review is led by the Department for Business and Trade and the Office for Product Safety and Standards. It aims to assess whether the UK’s toy safety framework is fit for modern products and purchasing habits.

The government said the Call for Evidence will examine issues including chemical safety and toys that use AI features.

Consumer Protection Minister Kate Dearden said toy safety rules must keep pace with changes in how people shop and the types of toys children use.

The Call for Evidence is open until 6 October 2026 and invites views from parents, consumer groups, businesses, enforcement authorities and the wider public.

The review forms part of a wider UK programme to reform product safety rules, including measures aimed at unsafe goods sold through online marketplaces.

It does not introduce new toy safety rules immediately, but it will help the government decide how to update the framework.

Why does it matter?

AI-enabled toys raise product safety questions that go beyond traditional concerns such as chemicals, small parts or physical defects. Connected and interactive toys may involve software, data use, voice interaction, recommendation systems or adaptive behaviour, creating new risks for children and new responsibilities for manufacturers, retailers and online marketplaces. The UK review shows how AI is entering mainstream consumer product safety policy, not only digital regulation.

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UAE Central Bank approves dirham stablecoin for retail use

The UAE Central Bank has issued a No Objection Certificate allowing the dirham-backed stablecoin DDSC to go live on selected exchange platforms regulated by Dubai’s Virtual Assets Regulatory Authority.

DDSC was developed through a collaboration between International Holding Company, First Abu Dhabi Bank and Sirius International Holding. The stablecoin is pegged 1:1 to the UAE dirham and operates on ADI Chain, an institutional Layer-2 blockchain.

The latest clearance follows earlier Central Bank approval for the launch of DDSC, announced in February 2026. The new no-objection certificate allows the stablecoin to partner with selected VARA-regulated exchange platforms.

The regulatory structure reflects the UAE’s dual-layer approach to digital assets. The Central Bank oversees payment tokens and monetary stability requirements, while VARA licenses and supervises virtual asset platforms in Dubai.

DDSC is designed to support digital payments, including peer-to-peer transfers, merchant payments and supplier settlements in dirhams.

The project has already been tested in institutional transactions, including a reported AED 110 million transfer on ADI Chain.

The approval marks another step in the UAE’s effort to build a regulated dirham-denominated digital payment infrastructure.

Why does it matter?

The DDSC approval demonstrates that the UAE is establishing a regulatory framework for stablecoins tied to its national currency. Central Bank clearance combined with VARA-regulated exchange access could make dirham-backed tokens more usable in payments, settlement and digital asset markets. The case also highlights a broader regulatory model in which monetary authorities oversee the approval of payment tokens, while specialised virtual asset regulators supervise exchange platforms.

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Spain pushes for AI regulation to protect workers

Spain has called for stronger regulation of AI and algorithmic management in the workplace, arguing that digital technologies should strengthen workers’ rights rather than undermine them.

Speaking at the VI Ibero-American Ministerial Conference on Labour in Avilés, Spain’s Second Vice President and Minister of Labour, Yolanda Díaz, urged governments across the region to establish governance frameworks that ensure transparency, human oversight and the ethical use of AI in employment.

The conference focused on two priorities shaping the future of work. Ministers agreed on the need to professionalise, formalise and improve working conditions in the care sector, recognising its economic and social importance while addressing the precarious conditions faced by many workers, particularly women.

Delegations also examined the growing use of algorithmic management, stressing that governments should actively regulate AI to protect labour rights.

The meeting concluded with the adoption of the Avilés Ministerial Declaration and the Ibero-American Commitment on the Social and Solidarity Economy 2026–2030. Together, the documents establish shared principles on care work, algorithmic governance and labour rights while strengthening regional cooperation to promote inclusive economic development, quality employment and more resilient labour markets ahead of the XXX Ibero-American Summit in Madrid later this year.

At the same time, the commitment strengthens regional cooperation to promote inclusive economic development, quality employment and more resilient labour markets ahead of the XXX Ibero-American Summit scheduled to take place in Madrid later this year.

Why does it matter?

The conference reflects growing international concern that AI is reshaping the workplace faster than labour regulations are evolving. By calling for greater transparency, human oversight and accountability in algorithmic management, Spain is arguing that AI should improve working conditions without weakening workers’ rights or limiting human decision-making.

The adoption of shared regional principles also highlights how labour policy is becoming an increasingly important part of AI governance. As algorithmic systems play a larger role in hiring, scheduling, performance management and other employment decisions, governments are placing greater emphasis on ensuring that technological innovation remains aligned with fairness, inclusion and decent work.

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