Socio-economic and ethical Impact of artificial intelligence on organizations and the future of work

Abstract

The technological boom of Artificial Intelligence (AI) is having an extraordinary impact on organizations and the future of work at an unprecedented pace. The socio-economic and ethical implications of this technology are very significant and should not be overlooked. This study inspects the current state of AI, specifically generative AI, in relationship to ethical issues such as bias and discrimination, accountability, and worker autonomy, as well as socio-economic issues such as job displacement, upskilling and reskilling. The results show that ethical components of AI development are often neglected, which results in unreliable, unfair and biased AI that can already affect human lives. The socio-economic analysis shows not only the benefits of the adoption of generative AI, its improvement of workers' productivity and efficiency but also the effect it has on workers' cognitive skills, job displacement through automation, and the expected change of the most needed skills. Both socio-economic and ethical impacts are explored from the perspective of labour process theory, which is proposed as a framework for future research. As organizations and companies begin to increasingly rely on AI, there is a need to develop frameworks that balance technological advancement with ethical and socio-economic responsibilities. This master thesis provides a foundation for future research on a systematic approach to AI governance that addresses these impacts, ensuring that the benefits of AI can be kept, at the same time mitigating its potential risks to society and the future of work.