Automation can replace some tasks while creating demand for others. The effect depends on whether machines substitute for workers, complement them or create entirely new activities.
Historical experience suggests that technological change can raise productivity and create new industries, but transitions can be painful for workers whose skills become less valuable. Education alone may not solve the problem if institutions cannot help people move between occupations.
The policy challenge is therefore adjustment. Economies need innovation, but also pathways that help workers acquire new skills and participate in the gains.