ILO - AI and Work Observatory

Overview

The ILO Observatory on AI and Work in the Digital Economy, launched on September 25, 2024, serves as the International Labour Organization’s primary knowledge hub and strategic framework for addressing the profound transformations in the global labor market driven by artificial intelligence. Established during a high-level event featuring leaders from the UN, national governments, and social partners, the Observatory represents a centralized response to the dual challenges of technological innovation and the preservation of labor rights. Its primary mission is to provide evidence-based analysis and policy guidance to ensure that the digital transformation adheres to the ILO’s 'human-in-command' approach, where technology serves to augment human capabilities rather than diminish worker agency or dignity. The significance of the Observatory lies in its role as a bridge between technical AI development and the social contract. As AI systems increasingly automate tasks and reconfigure management practices, the Observatory provides the necessary data and analytical rigor to help ILO member states navigate these shifts. It operates within the context of the ILO’s Centenary Declaration for the Future of Work (2019), emphasizing that the governance of AI must be grounded in social justice and decent work. By consolidating research on employment exposure, productivity gains, and the risks of a 'digital divide,' the Observatory aims to empower governments, employers, and workers' organizations to proactively shape a future of work that is inclusive and equitable. This initiative is part of a broader effort by the ILO to lead the global conversation on the social dimensions of technology, ensuring that the benefits of AI are shared broadly across society.

Definitions

The Observatory utilizes and formalizes several key definitions essential for the governance of AI in professional environments. Central to its framework is the concept of 'Algorithmic Management,' which the ILO defines as the application of algorithms and data-tracking technologies to perform functions traditionally handled by human managers, such as work assignment, performance monitoring, and termination. This definition is critical for identifying potential risks to worker privacy and autonomy. Another foundational term is 'Digital Labour Platforms,' which encompasses both web-based platforms where tasks are performed remotely and location-based platforms (such as ride-hailing or delivery services). The Observatory distinguishes between these to better analyze the varying impacts on employment status and social protection coverage. Furthermore, the document emphasizes the 'Human-in-Command' principle, which dictates that AI systems should be designed and deployed in a manner that ensures human oversight and accountability at all stages of the labor process. This is closely linked to the definition of 'Decent Work,' a long-standing ILO pillar that is now being re-interpreted for the digital age to include protection against algorithmic bias and the right to disconnect. By standardizing these definitions, the Observatory provides a common language for tripartite constituents—governments, employers, and workers—to engage in social dialogue and develop harmonized regulatory responses to the digital economy. These definitions are not static; they are designed to evolve as the technology and its applications in the workplace continue to advance.

Governance and Institutional Framework

The governance of the Observatory is rooted in the ILO’s unique tripartite structure, which ensures that policy recommendations are informed by the perspectives of governments, employers' organizations, and trade unions. Administratively, the Observatory is housed within the ILO’s Research Department, led by the Director of Research, but it functions as a cross-departmental initiative involving the Employment Policy Department, the Governance and Tripartism Department, and the Bureau for Workers' Activities (ACTRAV) and Bureau for Employers' Activities (ACT/EMP). This collaborative structure allows the Observatory to integrate technical labor market data with legal analysis and practical insights from the workplace. Institutional oversight is provided by the ILO Governing Body, which monitors the Observatory’s progress and ensures its alignment with the organization’s broader strategic objectives, such as the Global Coalition for Social Justice. The Observatory also maintains a high-level advisory function, engaging with external experts and international bodies like the UN Secretary-General’s Envoy on Technology. This framework ensures that the Observatory remains a dynamic entity, capable of responding to rapid technological shifts while maintaining the institutional legitimacy required to influence international labor standards and national policy reforms. The governance model also emphasizes transparency, with regular reports published to keep all stakeholders informed of the Observatory's findings and activities.

Key Provisions

The Observatory is organized around four primary thematic pillars that constitute its key provisions for research and policy action. The first pillar focuses on 'Artificial Intelligence and Jobs,' providing global analyses of occupational exposure to generative AI. This includes the development of indices to measure whether AI is likely to automate, augment, or transform specific job roles, with a particular focus on the gendered and geographic dimensions of these impacts. The second pillar addresses 'Algorithmic Management,' establishing guidelines for the ethical use of AI in human resource management and advocating for transparency in the algorithms used to evaluate worker performance. The third and fourth pillars focus on 'Digital Labour Platforms' and 'Workers’ Personal Data,' respectively. The Observatory provides a Global Policy Tracker that catalogs national and regional legislative initiatives concerning platform work, facilitating the exchange of best practices for ensuring fair remuneration and social security for platform workers. Regarding data, the Observatory advocates for robust protections that prevent the misuse of worker data for surveillance or discriminatory purposes. Together, these provisions form a comprehensive roadmap for member states to implement regulatory frameworks that balance the benefits of AI-driven productivity with the protection of fundamental labor rights. Each pillar is supported by a dedicated research team and a set of interactive tools designed to make the data accessible to a non-technical audience.

Scope and Application

The scope of the ILO Observatory is global and cross-sectoral, reflecting the universal impact of AI on the world of work. It applies to all 187 ILO member states, offering tools and resources tailored to different levels of economic development. While much of the initial discourse on AI has focused on high-income economies, the Observatory explicitly addresses the 'AI Divide,' focusing on the Global South where infrastructure and skills gaps may exacerbate existing inequalities. Its application extends beyond the technology sector to include traditional industries like manufacturing, agriculture, and healthcare, where AI is increasingly used for process optimization and workforce management. In terms of application, the Observatory’s findings and trackers are designed to be used by a wide range of stakeholders. For governments, it provides a repository of regulatory models and impact assessments to inform labor law reform. For social partners—trade unions and employers—it offers a basis for collective bargaining in the digital age, providing data that can be used to negotiate terms around AI deployment, reskilling, and data privacy. The Observatory’s comprehensive scope ensures that no sector or region is left behind in the global effort to govern AI in a way that supports social justice. This global reach is facilitated by the ILO's network of regional and country offices, which help to disseminate the Observatory's work at the local level.

Implementation Framework

Implementation of the Observatory’s objectives is achieved through a multi-faceted approach involving knowledge dissemination, technical assistance, and social dialogue. The primary vehicle for implementation is the online portal, which serves as a live repository for research papers, policy briefs, and interactive data tools. This portal is designed to be a practical resource for policymakers, providing 'Policy Trackers' that allow users to compare different national approaches to AI and platform work regulation. By making this information accessible, the ILO facilitates the 'scaling up' of successful policy interventions across different jurisdictions. Technical cooperation is another critical component of the implementation framework. The ILO provides direct assistance to member states to help them integrate AI-related considerations into their National Decent Work Country Programmes. This includes training for labor inspectors on how to identify and address algorithmic discrimination and support for vocational training centers to develop AI-literacy programs. Furthermore, the Observatory promotes implementation through 'Social Dialogue,' encouraging the creation of national tripartite committees dedicated to managing the digital transition. This ensures that the implementation of AI at the workplace level is not a unilateral management decision but a negotiated process involving all stakeholders. The implementation strategy also includes a strong focus on capacity building for workers' and employers' organizations.

Monitoring and Evaluation

Monitoring and evaluation (M&E) within the Observatory framework are conducted through continuous data collection and periodic reporting to the ILO’s constitutional bodies. The Observatory utilizes the ILOSTAT database and real-time labor market information (LMI) to monitor trends in AI adoption and its effects on employment levels, wage structures, and working conditions. These metrics allow the ILO to evaluate the effectiveness of various policy interventions and to identify emerging risks, such as new forms of digital exclusion or occupational safety and health (OSH) issues related to algorithmic stress. Evaluation is also tied to the ILO’s standard-setting activities. The insights gathered by the Observatory directly inform the discussions at the International Labour Conference (ILC), particularly the upcoming standard-setting discussions on 'Decent Work in the Platform Economy' scheduled for 2025 and 2026. By providing a rigorous evidence base, the Observatory ensures that new international labor standards are grounded in the actual experiences of workers and enterprises in the digital economy. Periodic reviews of the Observatory’s own strategic impact are also conducted to ensure that its research remains relevant and that its policy guidance continues to meet the needs of its tripartite constituents. This M&E process is designed to be iterative, allowing the Observatory to adapt its focus as new technologies and labor market challenges emerge.

Relationship to Other Instruments

The ILO Observatory does not operate in a vacuum but is deeply interconnected with other international labor standards and governance instruments. It builds upon the 'ILO Centenary Declaration for the Future of Work' (2019), which called for a human-centered approach to technology. It also complements existing conventions, such as the 'Employment Policy Convention (No. 122)' and the 'Occupational Safety and Health Convention (No. 155),' by providing modern interpretations of how these standards apply to AI-driven workplaces. The Observatory’s work on data privacy is also aligned with the 'ILO Code of Practice on the Protection of Workers’ Personal Data' (1997), updating its relevance for the era of big data and machine learning. Furthermore, the Observatory plays a crucial role in the development of new instruments. The data and analysis it provides are foundational for the proposed new international standard on digital labor platforms. By tracking how different countries implement the 'EU AI Act' or the 'OECD AI Principles' from a labor perspective, the Observatory helps ensure that the world of work is not overlooked in broader AI governance frameworks. This relationship ensures a cohesive global regulatory environment where labor rights are integrated into the overarching architecture of digital governance. The Observatory also works to ensure that labor standards are reflected in the emerging field of AI ethics and technical standards.

International Alignment

International alignment is a core strategic objective of the Observatory, ensuring that the ILO’s work on AI is synchronized with broader UN initiatives and global governance efforts. The Observatory is a key contributor to the 'UN Global Digital Compact' and the 'Summit of the Future,' advocating for the inclusion of labor rights and social justice in the international digital agenda. It works closely with the UN Secretary-General’s High-level Advisory Body on Artificial Intelligence to ensure that the 'human-in-command' principle is recognized as a global standard for ethical AI. Beyond the UN system, the Observatory aligns its work with the G20 and G7 labor and employment tracks, providing technical expertise to support their commitments to inclusive digital growth. It also collaborates with the OECD on the 'Global Partnership on AI' (GPAI), particularly on themes related to the future of work and skills. This alignment prevents the duplication of efforts and ensures that the ILO’s expertise in labor markets informs the technical and ethical standards being developed by other international bodies. By fostering this cross-institutional cooperation, the Observatory helps build a unified global approach to AI governance that prioritizes the well-being of workers worldwide. This collaborative effort is essential for creating a stable and predictable environment for both businesses and workers in the global digital economy.

Implementation Timeline

Adoption and Endorsement

Sources and References