The Digital Transformation: An In-depth Exploration of the Impact and Future of Digitalisation in the European Union
Table of Contents
The Digitalisation Phenomenon
Digitalisation, the ongoing integration of digital technologies and digitised data across the economy and society, is a transformative force that is accelerating the pace of change affecting all aspects of our lives.
This has significant implications for the future of work. Innovations and developments in advanced technologies, such as artificial intelligence, machine learning, and blockchain, are having profound effects in almost all areas of the economy, from manufacturing and services to healthcare and education. These technologies are not only changing the way businesses operate but are also reshaping the nature of work and employment.
The European Approach to Digitalisation
The European way to a digitalised economy and society is rooted in the principles of solidarity, prosperity, and sustainability. It is anchored in the empowerment of its citizens and businesses, ensuring the security and resilience of its digital ecosystem and supply chains. Policymakers need to gain knowledge that will help to address questions about effective regulation, skills needs, how to ensure social protection in its broadest sense, and balancing the demands of companies, societies, and individuals in exploiting the great potential of digitalisation.
Eurofound’s Research on Digitalisation
Eurofound’s research on anticipating and managing the impact of change explores the impact of digitalisation on working life, as well as the links with the transition to a climate-neutral economy. This covers a wide range of issues, including employment levels, working conditions, social protection, and employment relations. The research provides evidence of structural changes, driven largely by these megatrends, but also by the COVID-19 crisis, that can inform policy in ensuring just transitions which promote employment, good working conditions, social protection and workers’ rights, while also improving labour productivity, competitiveness, and prosperity.
Digitalisation at the Workplace
Eurofound’s research looks at the effects of the deployment of digitalisation at the company level on employment and working conditions, including social protection. The research provides insights into the human and ethical implications of digitalisation at the workplace, also in the aftermath of COVID-19, as well as exploring the characteristics and effects of human–machine interaction related to advanced robotics.
Restructuring Linked to Megatrends in the Economy
The European Restructuring Monitor (ERM) events database captures where restructuring is specifically linked to digitalisation and COVID-19. A specific strand of study offers some sectoral insights, exploring the work and employment impact of structural change in financial services. This is a sector that has been substantially affected by digitalisation and other megatrends, as well as by the COVID-19 crisis, altering the occupational structure in the sector.
Future Scenarios
Desirable future scenarios of potential developments driven by digitalisation or the transition to a climate-neutral economy will be explored. This will look at possible pathways and measures to achieve the desired outcomes and avoid disadvantageous ones.
Informing the Policy Debate
Research on the twin transition related to digitalisation and climate change could provide relevant information for policymakers seeking solutions to make markets work better for consumers, businesses, workers and society, for the sustainable development of cities and urban areas, and to support regions to improve their infrastructure and access to services.
Steering Through the Digital Revolution: The EU’s Path Towards a Balanced and Inclusive Digital Future
The digitalisation process is a transformative force that is reshaping the economic and social landscape of the European Union. As we navigate this digital era, it is crucial to ensure that the benefits of digitalisation are shared equitably among all stakeholders, from employees to customers. This will require a commitment to social dialogue, investment in skills development, and a concerted effort to address gender inequalities.
The future of the EU will be defined by its ability to navigate the digital revolution, manage restructuring processes effectively, and address the challenges of skills development and gender inequality. As the sector embarks on this journey, it has the opportunity to shape a future that is not only economically sustainable but also socially inclusive.
