Malta Digital Skills and Jobs Platform (LISP)

Skills in the AI Age

Artificial intelligence (AI) is emerging as a general-purpose technology with the potential to transform economies in ways comparable to previous industrial revolutions. The OECD argues that AI can boost productivity, innovation and job quality by automating routine tasks and augmenting human capabilities, but it also creates risks of job displacement, widening inequalities and uneven adoption across sectors, firms and regions. While AI adoption has accelerated rapidly, particularly with the rise of generative AI, larger firms and innovative start-ups are leading uptake, whereas many SMEs continue to face barriers related to costs, infrastructure and shortages of skilled workers.

The report emphasises that AI is more likely to reshape work than eliminate it. High-skilled occupations such as managers, engineers and IT professionals are among the most exposed to AI, yet they are generally less vulnerable to automation because they rely on complex cognitive, creative and interpersonal skills. By contrast, routine manual and administrative jobs face greater automation risks. To thrive in this changing labour market, individuals need a combination of foundational skills (such as literacy and numeracy), digital and AI-related technical skills, and complementary capabilities including critical thinking, creativity, communication and lifelong learning. Although demand for AI skills is growing rapidly, workers with advanced AI expertise still represent only around 1% of the workforce, making skills shortages a key constraint on AI adoption.

The OECD concludes that policy will play a decisive role in ensuring AI benefits are broadly shared. Governments should modernise education systems, expand lifelong learning and reskilling opportunities, strengthen AI and digital literacy for all citizens, support employer-led training, and provide targeted assistance for workers displaced by technological change. The report also highlights the importance of partnerships between governments, education providers and employers, as well as policies that improve inclusion for disadvantaged groups and reduce regional and gender gaps in AI skills. Overall, the report argues that societies can maximise AI’s economic and social benefits only by investing continuously in human skills and ensuring people remain adaptable throughout their working lives.