AI’s Impact on Global Sustainability and Labor Markets

Artificial intelligence (AI) has quickly become a technology that shapes both environmentalsystems and the way labor market’s function. This chapter examines these two sides together,because AI can support sustainability goals while also creating new risks. On theenvironmental side, AI helps with predictive maintenance, improves circular-economypractices, strengthens the integration of renewable energy, and offers better tools forforecasting climate-related threats. Still, these gains come with clear costs. Data centersrequire large amounts of electricity and water, and the production of advanced hardwarerelies on resource-intensive supply chains. In some cases, efficiency improvements eventrigger rebound effects that offset the environmental benefits. The labor market is alsoundergoing a noticeable shift. AI speeds up automation in routine tasks, which puts pressureon workers in administrative and mid-skill occupations. At the same time, it opens new rolesin areas such as AI ethics, algorithm auditing, and human-machine collaboration. Thesedevelopments do not affect all groups equally. Differences in digital skills, gender, region, andsocioeconomic background can widen existing inequalities. For this reason, the idea of a “justtransition” has become central, emphasizing policies such as reskilling programs, income-support mechanisms, and more inclusive innovation strategies. The chapter also discussesgovernance challenges. While frameworks like the EU AI Act, the OECD Principles, and variousresponsible AI guidelines try to set clearer rules, countries still take very different approaches,especially on issues such as data control and cross-border information flows. Thesedifferences reflect broader geopolitical tensions and influence how benefits and burdens aredistributed. Overall, the chapter highlights the need for evidence-based policies that alignecological sustainability, fair labor outcomes, and balanced global governance.