Chapter 1: The Transformative Impact of AI: Implications for Education, Labour and Smart Systems Available to Purchase

The transformative impact of Artificial Intelligence (AI) is reshaping education, labour and smart systems, driving significant changes in skill demands and labour market dynamics. Globalization and digitalization have shifted labour markets and economies towards knowledge-intensive sectors. They need highly adaptable, digitally literate labour force. This chapter explores the evolving labour market context, where AI and automation redefine job roles, emphasizing creativity and interdisciplinary skills while automating routine tasks. AI’s effects extend to education sector, highlighting the need for lifelong learning, flexible modular training and public–private collaborations to align curricula with industry needs. In an AI-driven labour market, equipping individuals with skills like critical thinking, digital literacy and problem-solving is essential. Interdisciplinary approaches in different learning context can create the skills needed for future roles. The mechanisms of reskilling and upskilling the labour force, through the lifelong learning process, are necessary responses to evolving demands in the current societies.