Labor Market Disruption and Economic Displacement:

Frontier AI Risk Management Framework (v1.0)

SAIL & Concordia AI (2025)

Source

Sub-category

Risk Domain

6Socioeconomic & Environmental

6.2Increased inequality and decline in employment quality

Social and economic inequalities caused by widespread use of AI, such as by automating jobs, reducing the quality of employment, or producing exploitative dependencies between workers and their employers.

"Rapid automation enabled by general-purpose AI could trigger widespread unemployment across knowledge work sectors, creating skill mismatches faster than retraining programs can address. Unlike previous technological transitions, AI’s broad capabilities may simultaneously affect multiple industries, potentially overwhelming social safety nets and creating systemic economic instability, particularly in regions heavily dependent on jobs susceptible to AI automation."(p. 9)

Entity— Who or what caused the harm

Human

Due to a decision or action made by humans

AI system

Due to a decision or action made by an AI system

Other

Due to some other reason or is ambiguous

Intent— Whether the harm was intentional or accidental

Intentional

Due to an expected outcome from pursuing a goal

Unintentional

Due to an unexpected outcome from pursuing a goal