A new perspective from the European Labour Authority and the European Commission's Directorate-General for Employment, Social Affairs and Inclusion has highlighted how Europe's approach to developing skills in AI technology could shape the future of work by 2040.
See also: Spotify: AI DJ now “speaks” more languages
The report presents several possible futures driven by the adoption of artificial intelligence, from economic growth and new professional opportunities to growing inequality, job insecurity and weakening workers' rights. At the heart of all the scenarios is a common factor: whether governments, employers and institutions invest in the skills development of the workforce in a timely manner.
According to the findings, AI could create a future where learning becomes more accessible, career development more flexible and workers better equipped to adapt to changing industries. However, the report also warns that without strong investment in developing AI skills, Europe risks widening the gap between workers who can adapt to new technologies and those who are left behind.
One of the scenarios outlined in the report imagines a future where artificial intelligence transforms workplaces so rapidly that many jobs become unrecognizable. In this version of 2040, governments and employers fail to provide adequate training to the workforce, leaving workers responsible for adapting on their own.
The report notes that workers with strong digital and technical skills are likely to benefit most in such an environment. Meanwhile, workers without access to learning opportunities could struggle to remain employable as automation reshapes industries.
The consequences go beyond employment challenges. The report points to growing economic pressure, declining physical and mental well-being, and increased social inequality as potential outcomes of an AI transition that does not include inclusive skills development policies.
Another scenario presents an even more dire picture of the future. In this case, AI technologies and automation dominate nearly every aspect of work and daily life. A small number of powerful organizations control much of the AI ecosystem, influencing policymaking, economic systems, and broader social structures.
See also: Meta vs. Ofcom: New legal dispute
Under this model, companies rely heavily on automation while reducing investment in employee development. Workers across industries are losing jobs as AI systems take over tasks previously performed by humans. The report also warns that weak regulation and limited government oversight could leave workers with few protections.
Unions, according to the scenario, lose influence in defending workers’ rights and fair working conditions. The concentration of power among major AI players could also threaten democratic systems while raising environmental concerns associated with large-scale AI infrastructure and energy use.
The report also looks at a more moderate future in which AI adoption progresses gradually rather than aggressively. While this path seems less disruptive, the researchers argue that it could still create long-term problems if Europe fails to prioritize the development of AI skills.
In this 'missed opportunity' scenario, the slow pace of adoption of AI is preventing businesses and workers from fully benefiting from innovation. The report suggests that Europe could miss out on productivity gains, new products and emerging industries if organisations hesitate to adopt AI technologies on a large scale.
For workers, the impact could mean fewer opportunities to move into creative and high-value roles often associated with industries driven by AI. Instead, advanced tasks and innovation-related jobs may remain concentrated in a small group of highly skilled professionals, while much of the workforce continues to perform repetitive or lower-value tasks.
Employers may avoid the disruption associated with rapid automation, but they could also fall behind in global competitiveness due to limited innovation and slower operational improvements.
See also: Apple blocks Chinese trademark in Europe
Despite describing several worrying future scenarios, the report stresses that these outcomes are not inevitable. Instead, it argues that coordinated action between governments, businesses, educational institutions and workers can help create a more balanced and inclusive AI economy.
