The last few years have brought major changes to regional and local labour markets. Artificial Intelligence (AI) tools are a promising way to ensure the functionality of the labour market and, at the same time, to support continued growth in employment and strengthen the integration of many marginalised target groups into the labour market through social inclusion and protection. This publication by the European Network on Regional Labour Market Monitoring illuminates the functionalities of AI tools for the improvement of labour market functions, especially with respect to fair and socially sustainable work. It presents known AI solutions and identifies existing gaps in this regard. It is also of interest how public employment services could use AI tools to shape their new role as regional and local nodes in labour market monitoring and their consulting role for labour market actors. More than 30 authors from different European countries and beyond describe their experiences and approaches in the context of their use of AI with a special focus on regional and local labour markets, target groups, and specific sectors and industries.