Future of work Archives | Digital Watch Observatory

Transparency push for automated recruitment in the UK

The UK’s Information Commissioner’s Office has issued new guidance on the growing use of AI in recruitment, warning jobseekers may be unaware of how automated systems influence hiring decisions. The regulator says greater transparency is needed as adoption accelerates.

Automated decision-making tools are increasingly used to screen applications, analyse CVs and rank candidates. While this can improve efficiency, some applicants may be rejected before any human review takes place.

The regulator highlights risks including bias, lack of clarity and potential unfair treatment if safeguards towards the use of AI are not properly applied. Employers are expected to monitor systems for discrimination and clearly explain how decisions are made.

Jobseekers are entitled to know when automation is used, to challenge outcomes, and to request human review. The guidance aims to ensure fair and lawful hiring practices as AI becomes increasingly embedded in UK recruitment.

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MIT study finds steady AI growth reshapes work

A new study from the Massachusetts Institute of Technology (MIT) Computer Science and Artificial Intelligence Laboratory finds that AI is reshaping work through steady, broad-based improvements rather than sudden technological jumps.

Researchers describe this pattern as a ‘rising tide,’ in which capability gains emerge across many tasks simultaneously.

The analysis draws on more than 17,000 worker evaluations covering over 3,000 text-based tasks from US labour classifications. Findings show limited evidence of abrupt ‘crashing wave’ breakthroughs in which AI suddenly masters specific job areas.

Instead, performance improves consistently across tasks of varying complexity and duration. Researchers report that current AI systems can already complete roughly half to three-quarters of text-related tasks at a minimally sufficient standard without human intervention.

Projections suggest that, if current trends continue, success rates could reach around 80 to 95 percent by 2029, although higher-quality performance may take longer to achieve.

Workplace change is unfolding gradually, with employees shifting towards oversight roles focused on directing, reviewing, and validating AI outputs.

Despite a slower structural transition than abrupt disruption scenarios, researchers warn that cumulative improvements could still drive significant labour market effects as adoption expands.

AI-driven change is likely to unfold across a wide range of tasks, allowing adaptation by workers and organisations while still signalling longer-term shifts in skills, workflows, and labour markets.

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OpenAI presents policy proposals addressing AI’s economic and labour impacts

Policy proposals advanced by OpenAI outline a vision of economic restructuring in response to the growing influence of AI.

Framed within an emerging ‘intelligence age‘, the approach reflects concerns that AI-driven productivity gains may concentrate wealth while undermining traditional labour-based economic models.

The proposals, therefore, attempt to reconcile market-led innovation with mechanisms aimed at broader distribution of economic benefits.

A central element involves shifting taxation away from labour towards capital, reflecting expectations that automation will reduce reliance on human work.

Instruments such as robot taxes and public wealth funds are presented as potential tools to redistribute gains generated by AI systems.

Such proposals by OpenAI indicate a policy direction where states may need to redefine fiscal structures to sustain social protection systems traditionally funded through employment-based taxation.

Labour market adaptation forms another key pillar, with suggestions including shorter working weeks, portable benefits, and increased corporate contributions to social welfare.

However, reliance on employer-linked mechanisms raises questions about coverage gaps, particularly for individuals displaced by automation. The proposals highlight ongoing tensions between corporate-led welfare models and the need for more comprehensive public safety nets.

Alongside economic measures, the framework addresses governance challenges linked to advanced AI systems, including systemic risks and misuse.

OpenAI’s proposals also recommend that oversight bodies, risk containment strategies, and infrastructure expansion reflect an effort to balance innovation with control.

Treating AI as a utility further signals a shift towards recognising digital infrastructure as a public good, though implementation will depend on political consensus and regulatory capacity.

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Gallup finds AI is shaping some college students’ academic choices

Gallup reported that 16% of currently enrolled college students had changed their major or field of study due to AI’s potential impact. They claim that 14% have thought ‘a great deal’ and 33% ‘a fair amount’ about changing their major or field of study for the same reason.

Gallup said the findings are based on web surveys conducted from 2 to 31 October 2025 with 3,801 adults pursuing an associate or bachelor’s degree. The article is part of Gallup’s work with Lumina Foundation on higher education.

According to Gallup, men were more likely than women to report having changed majors because of AI’s potential impact, at 21% compared with 12%. Associate degree students were also more likely than bachelor’s degree students to say they had changed their major or field of study, at 19% compared with 13%.

Gallup also found that concern about AI’s impact on majors was greater among students in technology and vocational fields than among those in business, humanities, and engineering. In a separate write-up published the same day, the organisation said AI use is already routine for many students, even where institutions discourage or prohibit it.

The research presents the findings as evidence that AI is affecting how some students think about academic choices and future work. It does not show a policy decision or institutional rule change, but it does add survey evidence to debates about AI, higher education, and future-of-work expectations.

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US agencies launch national AI workforce initiative

The US Department of Labor and the National Science Foundation have formalised a partnership to prepare the American workforce for the rapid expansion of AI.

The agreement supports the launch of the TechAccess: AI-Ready America initiative, designed to broaden access to AI education, tools, and training across industries.

Central to the programme is a proposed funding package of up to $224 million to support the creation of up to 56 state and territory coordination hubs. These hubs are expected to strengthen regional AI readiness and connect workforce systems with education and training providers.

The initiative brings together multiple federal partners, including the Department of Agriculture and the Small Business Administration, to coordinate national efforts. Existing workforce structures, including American Job Centers and apprenticeship programmes, will be integrated to support skills development and career transitions.

Alongside training efforts, the agreement includes joint research into how AI is reshaping labour markets, job requirements, and wider economic outcomes. The collaboration is positioned as a coordinated federal strategy to ensure workers and businesses can adapt to an AI-driven economy.

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Microsoft commits $10 billion to Japan’s AI future

Microsoft Corporation announced a $10 billion investment in Japan over four years to expand AI infrastructure and strengthen cybersecurity partnerships with the government. The investment aligns with Prime Minister Sanae Takaichi’s strategy for economic growth through advanced technologies.

The company will collaborate with Japanese firms SoftBank and Sakura Internet to develop domestically-based AI computing capacity, allowing Japanese businesses and government agencies to store sensitive data locally whilst accessing Microsoft Azure services.

Why does it matter?

Microsoft plans to train 1 million engineers and developers by 2030 as part of the initiative to build Japan’s digital workforce in AI and emerging technologies. The investment addresses Japan’s growing demand for cloud and AI services as part of the company’s Asia-wide expansion strategy.

The announcement, made on 3 April, reflects Microsoft’s commitment to supporting Japanese technological advancement whilst maintaining data security. Sakura Internet’s share price jumped 20 percent following the news, signalling strong market confidence in the partnership.

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EIB highlights AI as key driver of Croatia’s economic growth

The European Investment Bank and the Croatian National Bank have emphasised the strategic importance of AI in strengthening Croatia’s economic competitiveness. Discussions at a joint conference focused on accelerating AI adoption through coordinated investment, policy development and skills enhancement.

Despite strong investment activity among firms in Croatia, the uptake of advanced technologies remains limited. Only a small share of companies systematically use generative AI, with applications largely confined to internal processes, highlighting significant untapped potential for productivity gains.

Participants identified key structural barriers, including limited access to finance, shortages of skilled workers and regulatory uncertainty.

Addressing these challenges requires a combined approach that mobilises private capital, improves access to funding for smaller firms and supports the development of a more robust innovation ecosystem.

The EIB continues to play a central role in Europe’s digital transformation, with major funding initiatives aimed at scaling AI technologies and strengthening strategic infrastructure.

By aligning financial instruments with policy priorities, the initiative seeks to enhance long-term growth, resilience and integration into global value chains.

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EPO accelerates digital patent shift with paperless system by 2027

The European Patent Office (EPO) is accelerating its transition towards a fully digital patent system, with plans to implement a paperless patent-granting process by 2027.

Discussions at the latest eSACEPO meeting highlighted steady progress and broad stakeholder support for modernising patent workflows.

Electronic filing and communication are set to become the default, with paper-based processes limited to exceptional cases. The shift aims to improve efficiency and accessibility, supported by legal adjustments and the gradual introduction of structured data formats to enhance processing accuracy.

Digital tools continue to evolve, with the MyEPO platform expanding its functionality through interface upgrades, self-service features and new capabilities such as colour drawing submissions.

The rollout of DOCX filing, alongside optional PDF backups, reflects a cautious approach designed to balance innovation with reliability.

AI is increasingly integrated into patent examination processes, supporting tasks such as search and documentation.

However, the EPO maintains a human-centric model, ensuring that decision-making authority remains with patent examiners while AI enhances productivity and consistency.

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New Oracle agentic AI tool streamlines CAD to procurement workflows

Oracle has launched a new agentic AI application designed to connect engineering and procurement into a single workflow. The Design-to-Source Workspace for product lifecycle management aims to reduce delays, improve traceability, and minimise compliance risks across sourcing processes.

Traditional design-to-source models often operate sequentially, with engineering and procurement working in separate stages. Oracle’s approach replaces that structure with a continuous, coordinated loop, where AI evaluates cost, supply, and risk in real time as designs evolve.

The platform translates CAD data directly into sourcing actions, eliminating manual input and reducing errors. Automated workflows handle supplier identification, risk assessment, and request-for-quote execution, while maintaining compliance and auditability throughout the process.

Expected gains include up to 60% less manual work, significantly faster RFQ cycles, and a 20% to 30% reduction in overall sourcing timelines. Greater accuracy and improved decision-making allow teams to focus on higher-value tasks rather than repetitive coordination.

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Call to scrap cookie banners gains traction

A new study argues that cookie consent banners should be scrapped, claiming they fail to protect user privacy and instead create frustration. The research highlights how repeated pop-ups have become a defining feature of the modern internet.

The paper suggests that cookie banners, originally introduced under data protection laws, have led to ‘performative compliance’ rather than meaningful consent. Users often click through notices without understanding them, weakening the purpose of privacy regulation.

Researchers say the system may even normalise data tracking by encouraging habitual acceptance. Instead of improving transparency, the approach risks obscuring how personal data is collected and used across digital platforms.

The study calls for regulators to move beyond banner-based consent towards more effective privacy protections. It argues that current rules may hinder the development of better solutions by giving the impression that the problem has already been addressed.

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