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A potential boost from AI in ageing societies: Early insights

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  • Christophe André
  • Matthias Schief

Abstract

Demographic headwinds are set to weaken economic growth in OECD countries over the coming decades. At the same time, artificial intelligence (AI) provides opportunities for productivity gains, potentially alleviating labour shortages and boosting economic growth. However, little is known about how exposure to AI varies over the life cycle and what this may imply for AI deployment in ageing societies. This paper shows, using OECD Programme for the International Assessment of Adult Competencies (PIAAC) data, that workers’ overall exposure to AI (automation and augmentation) exhibits an inverted U-shaped pattern across age groups, albeit less pronounced when controlling for education, occupation and country. Exposure to automation is higher in younger age groups and declines rapidly with age, as experience tends to complement AI. Nevertheless, as a general-purpose technology, AI is bound to be disruptive. Reaping its benefits will require labour market reallocation, reskilling and upskilling, and business dynamism and innovation, which may all be weaker in ageing societies.

Suggested Citation

  • Christophe André & Matthias Schief, 2026. "A potential boost from AI in ageing societies: Early insights," OECD Economics Department Working Papers 1870, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1870-en
    DOI: 10.1787/be002e40-en
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    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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