by Antonis Zairis*
Today, however, things are undergoing a radical transformation. Algorithms, big data, and artificial intelligence systems are bringing about dramatic changes not only in the nature of work but also in its quality and content. We are not simply talking about technological unemployment or frictional unemployment, where people are in a transitional phase between two jobs, but about structural unemployment in a rapidly evolving and changing environment. On the other hand, new specializations are needed to meet the demands of technological innovations.
The power of Artificial Intelligence is not only redefining work but also the economy itself and the state-citizen relationships that have been established so far; most importantly, economic power is accumulating in large tech giants such as Google, Apple, Microsoft, OpenAI, and Palantir Technologies—which wield influence in data analytics—ByteDance, which holds sway through TikTok, Snap Inc., Discord Inc. for gaming, Klarna, SpaceX, and others. However, governments must exercise due diligence by focusing on economically vulnerable population groups, as the information economy can create new wealth but also “generates” inequalities.
It follows from the above, therefore, that a new social contract is necessary as part of the process of revision and readjustment, based on the new realities regarding state-citizen relations and the rights and obligations of citizens. However, this readjustment is clearly needed in our country as well, and it affects many sectors of the economy, from retail, banking, and tourism to public administration.
This means that the traditional structure of the Greek economy—which is vulnerable to technological changes and creates jobs with low added value and low skill requirements—must change for the simple reason that these jobs will be automated. In this regard, political will and intervention are deemed necessary; otherwise, job losses will occur, and more seriously, inequalities will widen. Undoubtedly, then, the new social contract will have its starting point in education. The debate over the much-discussed digital skills is deemed ineffective and bureaucratic, as the need for a new National System of Lifelong Learning that leads to the actual utilization of new employment opportunities takes precedence, as it constitutes the correct approach to solving the problem.
The call for a new social contract in our country, therefore, touches on political aspects and the undertaking of specific initiatives concerning: First, the existence, as we mentioned, of a national system of lifelong learning, with education linked to new technologies from the earliest school years;
Second, the redesign of social protection systems, as the nature of future work is changing;
Third, balancing the implementation of new technology and artificial intelligence systems, which must operate under conditions of accountability, transparency, and personal data protection; and Fourth, the new social contract must first and foremost serve and place the citizen at the center through rules that further deepen the functioning of democratic institutions and strengthen citizens’ faith in this new contract. In this context, therefore, collaboration between universities and businesses, with genuine incentives for both employees and the unemployed, is essential.
On the other hand, flexible work must not be associated with job insecurity, and the existence of mechanisms that ensure a decent guaranteed income and protect labor rights regardless of the type of employment lay the groundwork for secure conditions of resistance and integration in the face of the impending automation of labor.
In this context, artificial intelligence represents a potential opportunity and a driver of rapid growth for the country; however, it will benefit the many, as it will combine technological progress with social cohesion. Investments in technology and innovation are also of strategic importance and, moreover, targeted policy choices so that the country does not risk becoming trapped in a low-value-added model, with repercussions for its participation in the international division of labor, the jobs it “generates,” and the Greek economy’s need for competitiveness.
*Professor of Business Administration, Member of the American Economic Association (AEA)
By: N. Peter Kramer
