ECB reports minor impact of AI on employment
Limited effects of AI on employment so far do not rule out bigger changes as technology matures.
AI has so far had only a small effect on employment across Europe, according to economists at the European Central Bank. A comparison of 5,000 firms- both AI users and non-users- showed no significant difference in job creation or reduction.
Some firms that use AI intensively were even four percent more likely to hire new staff than average.
Economists noted that AI investment has not replaced existing jobs. In some cases, firms are hiring additional employees to develop and implement AI systems or to scale up operations more efficiently.
Only a minority of firms, around 15 percent, reported reducing labour costs as a motivation for AI adoption.
Despite limited impacts so far, the ECB cautioned that AI could have more significant effects as technology matures. Firms that specifically invest in AI to cut jobs may indeed reduce employment, and the long-term consequences for production processes and labour markets remain uncertain.
The findings come amid rising concern over AI-driven job losses, with companies such as Amazon and Allianz citing AI as a reason for recent cuts. Markets reacted negatively last week after a viral post predicted widespread layoffs, though current evidence shows only minor effects.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!