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In Europe, the integration of artificial intelligence (AI) into the workplace is showing a positive trend for employment among young and skilled workers, according to a recent study by the European Central Bank (ECB). Contrary to the historical pattern where technological advancements often led to a decline in medium-skilled jobs, the ECB’s research, authored by Stefania Albanesi, highlights a growth in employment in sectors exposed to AI without significant wage reductions.
The study, which surveyed 16 European countries, found that job growth in areas sensitive to AI contrasts with the tech-induced job polarization observed in the past. This suggests that the adoption of AI correlates with an increase in employment shares for young and skilled labor, even though earnings have been slightly impacted negatively. The variations in employment trends across Europe are linked to the rate at which technology is diffused and factors such as product market regulation and legal structures in different countries.
While the current employment trends defy the norms of a recession, there is still uncertainty about the full impact of AI on economies and social equality as its development progresses. The Organisation for Economic Co-operation and Development (OECD) supports the ECB’s findings but stresses the importance of developing digital skills among workers to adapt successfully to the increasing integration of AI in workplaces.
These insights into the European labor market come amid broader concerns about AI’s potential to automate jobs on a global scale. In March 2023, Joseph Briggs and Devesh Kodnani from Goldman Sachs forecasted that AI advancements could lead to the automation of up to 300 million jobs worldwide, particularly affecting white-collar professions such as law and administration. Additionally, OpenAI’s research predicts significant task automation across various industries for roughly 80% of US workers due to the capabilities of models like GPT.
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