OECD labour markets remain tight even as the recovery has stalled, with unemployment at a low not seen since the early 1970s. Yet, nominal wages have not kept up with high and persistent inflation, and real income of workers has fallen in almost all OECD countries. Increasingly rapid developments in AI are likely to significantly affect jobs. Initial results from a new OECD survey on AI use in the manufacturing and finance sectors show the urgent need to act now, with policies that allow countries, firms and individuals to benefit from AI, while addressing risks.