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AI adoption is creating and not destroying jobs, ECB's research paper finds

Published 11/28/2023, 06:58 PM
© Reuters.

The faster-than-expected integration of artificial intelligence (AI) has actually enhanced job creation rather than diminished it, especially among young and highly skilled workers, according to research published by the European Central Bank (ECB).

While firms have heavily invested in AI, the impact on the labor market has been a source of concern. The research, based on a sample of 16 European countries, revealed that sectors exposed to AI experienced an increase in employment share.

Low and medium-skill jobs saw minimal impact, while highly-skilled positions witnessed the most significant growth.

However, the study noted potential "neutral to slightly negative impacts" on earnings, with further effects anticipated as AI technologies continue to evolve and be adopted.

"These results do not amount to an acquittal," the paper said. "AI-enabled technologies continue to be developed and adopted. Most of their impact on employment and wages – and therefore on growth and equality – has yet to be seen."

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