A new outlook 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 AI skills development could shape the future of work by 2040.
The report presents several possible futures driven by artificial intelligence adoption, ranging from economic growth and new career opportunities to rising inequality, job insecurity and weakened worker protections. At the centre of all scenarios is one common factor: whether governments, employers and institutions invest early in workforce skills development.
According to the findings, AI could create a future where learning becomes more accessible, career growth becomes flexible and workers are better equipped to adapt to changing industries. However, the report also warns that without strong investment in AI skills development, Europe risks widening the gap between workers who can adapt to new technologies and those left behind.
AI-Powered Workplace Could Deepen Inequality
One of the scenarios described in the report imagines a future where artificial intelligence transforms workplaces so rapidly that many jobs become unrecognisable. In this version of 2040, governments and employers fail to provide adequate workforce training, leaving employees responsible for adapting on their own.
The report notes that workers with strong digital and technical skills are likely to benefit the most in such an environment. Meanwhile, employees 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 financial pressure, declining physical and mental wellbeing, and increased social inequality as possible outcomes of an AI transition that does not include inclusive skills development policies.
Another scenario paints an even more severe 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 organisations control much of the AI ecosystem, influencing policymaking, economic systems and broader social structures.
Under this model, companies rely heavily on automation while reducing investment in employee development. Workers across industries lose 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 little protection.
Trade unions, according to the scenario, lose influence in defending labour rights and fair working conditions. The concentration of power among major AI players could also threaten democratic systems while creating environmental concerns linked to large-scale AI infrastructure and energy use.
Slow AI Adoption May still Create a ‘Missed Opportunity’ for Europe
The report also explores a more moderate future in which AI adoption progresses gradually rather than aggressively. While this path appears less disruptive, researchers argue that it could still create long-term problems if Europe fails to prioritise AI skills development.
In this “missed opportunity” scenario, the slower pace of AI adoption prevents businesses and workers from fully benefiting from innovation. The report suggests that Europe could lose out on productivity gains, new products and emerging industries if organisations hesitate to adopt AI technologies at scale.
For workers, the impact could mean fewer opportunities to move into creative and high-value roles often associated with AI-driven industries. Instead, advanced tasks and innovation-related jobs may remain concentrated among a small group of highly skilled professionals, while much of the workforce continues performing repetitive or lower-value work.
Employers may avoid the disruption linked to rapid automation, but they could also fall behind in global competitiveness due to limited innovation and slower operational improvements.
AI Skills Development Seen as Central to Europe’s AI Future
Despite outlining several concerning futures, the report emphasises 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.
The European Labour Authority stresses that ongoing workforce skills development will play a central role in determining whether AI benefits society broadly or primarily advantages a small section of the population.
The report calls for greater collaboration in promoting lifelong learning, digital education and accessible training programmes that help workers adapt to evolving technologies.
It also highlights the importance of policies that support fair AI adoption while protecting workers’ rights and ensuring technological progress contributes to long-term economic and social stability.
As Europe continues shaping its AI strategy, the findings serve as a reminder that the future of work may depend less on the technology itself and more on how societies prepare people to work alongside it.
