We are living in a highly dynamic world where changes happen at an ever-increasing pace. Such changes are driven by new technology and innovation which are affecting many economies and societies. One of the most transformative technologies nowadays is probably the Artificial Intelligence or AI. Over the past few years, AI has significantly improved and demonstrated capabilities that are either equal to or superior than human. For examples, AlphaGo Zero won a competition against AlphaGo, which had previously defeated the human Go world champion. The program “Libratus” won poker games against human players, and the AI-powered robot in China, “Xiaoyi” passed the national medical licensing exam.On one hand, AI advancement has enabled robots to perform tasks similar to humans, and has become a part of our daily life. AI can be deployed in various business sectors. In respect of marketing and sales, AI could help in providing customer service and conducting analysis of previous sales figures. In manufacturing and supply chain management, AI could facilitate preventive maintenance by equipping expensive machinery, such as an electricity generator, with sensors so that it can detect deviations in order to prevent potential machine failure and significant loss. Furthermore, AI can help detecting and preventing fraudulent transactions.More and more businesses are adopting new technology and innovation. For examples, John Deere Company invented a smart tractor with functions that can be controlled remotely. Japan makes use of a movement sensor to enhance the production of wagyu beef. Denso Company Thailand, applies lean automation in its automobile parts manufacturing operations. As a result, the company was able to reduce the human labor component in its system.On the other hand, technology is having a severe impact on the labor market. Many positions, such as those which require repetition of work, will be replaced by disruptive technology in the near future. According to a study of Frey and Osborne,Technological Forecasting and Social Change, vol. 114, issue C: 254-280.">[1] 50 percent of workers in many countries will be replaced by technology. Even those with high level of education and some technical skills may also face job insecurity, as proven by a number of tech companies and startups around the world. SoftWear Automation, a tech startup in the United States, for instance, succeeded in developing automation called “Sewbots” that is capable of carrying out the whole process of T-shirt manufacturing. SMACC, a German startup, is also disrupting accounting departments around the world through its development of machine-learning software for invoice data extraction and processing, optimized payments, and even liquidity analysis. Robo-Lawyer, an AI-powered automated system, provides clients with legal consultation. Hence, all levels of jobs will soon be affected to different extents by disruptive technology.These new technology and innovation have great potential to promote economic growth through the invention of new products and services, reduction in business cost, and boosting competitiveness. At the same time, the invasion of AI can put many people at risk of unemployment and thus increase the government’s burden on social welfare. In order to ensure a balance between economic growth and inclusive development in the era of technology disruption, there are at least three things that countries should focus on: introducing a new way of learning to encourage new skills for the future, providing inclusive social protection for the people affected by automation, and finding a suitable policy to manage disruptive technology. This paper discusses the three measures in the following sections.