This paper addresses concerns regarding the future of work in the age ofdigital transformation. Specifically, it focuses on four aspects: job insecurity, thepossibility of technological unemployment, job polarization and incomeinequality. It insists that consequences of AI development should be diagnosedfrom a long-term perspective in which the time horizon is more than ageneration or two. Current technological progress is causing social conflict andcalls for the reexamination of rationales of past regulations enforced in the overalleconomy and for relevant policy response based on alternative principles. Thispaper suggested policy direction and approach towards labor regulations, socialprotection, and education systems.