Brussels, October 2 The story begins with a research paper published by Eurofound on 2 October 2026, titled ‘AI, algorithmic management and the transformation of society, work and employment – Exploring the concepts’. At its heart, the paper argues that technological breakthroughs do not automatically deliver shared prosperity and that institutions shape whether AI gains are widely distributed.
It highlights that AI companies like Anthropic and OpenAI are making independent decisions about risk assessment and deployment, while governments, including the Trump administration, are increasing their involvement—such as the June 2026 executive order establishing a framework for government assessment of advanced AI models, including cybersecurity capabilities. What unfolded shows a complex dynamic: Anthropic warned about risks of self-improving AI and suggested slowing frontier development, yet released its most powerful model shortly after, followed by restricted access to some models due to a US government order over alleged security concerns.
OpenAI paused work on an experimental model after it demonstrated advanced autonomous hacking capabilities in the OpenAI–Hugging Face incident. The paper draws on economist Carlota Perez’s framework, viewing technological revolutions as profound economic and social transformations that give rise to new techno-economic and socio-institutional paradigms. It cites the Industrial Revolution in Europe as a historical parallel: despite rapid productivity growth, real wages lagged for decades, and shared prosperity emerged only after institutions like labour laws, public education, social insurance, and social dialogue were built.
Eurofound’s approach emphasizes that institutions must adapt to channel technological change toward social progress. The paper concludes that as AI develops at extraordinary speed, the key question is whether institutions can steer it toward broader social progress, or what kind of society we want AI to help create—and what institutions are needed to make that possible.
These choices cannot be left to technology companies or market forces alone, given AI’s implications for security, democracy, social cohesion, and the future of work. Sara Riso, a research manager in the Working Life Unit at Eurofound, authored the paper. The publication has been read by policymakers, academics, and journalists in over 100 countries.
Looking ahead, the focus will be on how governments and international bodies respond to the paper’s call for institutional adaptation in the face of rapid AI advancement.
