The 2023 edition of the OECD Employment Outlook examines the latest labour market developments in OECD countries. It focuses, in particular, on the evolution of labour demand and widespread shortages, as well as on wage developments in times of high inflation and related policies. It also takes stock of the current evidence on the impact of artificial intelligence (AI) on the labour market. Progress in AI has been such that, in many areas, its outputs have become almost indistinguishable from that of humans, and the landscape continues to change quickly, as recent developments in large language models have shown. This, combined with the falling costs of developing and adopting AI systems, suggests that OECD countries may be on the verge of a technological revolution that could fundamentally change the workplace. While there are many potential benefits from AI, there are also significant risks that need to be urgently addressed, despite the uncertainty about the short- to medium-term evolution of AI. This edition investigates how to get the balance right in addressing the possible negative effects of AI on labour market outcomes while not stifling its benefits.