US EditionAI may be creating instead of destroying jobs for now, ECB blog argues
Firms using AI in the euro zone are 4% likelier to hire staff, but the European Central Bank warns the long-term effects on jobs remain uncertain.
- The blog post said the ECB found AI's current impact on jobs in the euro zone remains small, based on data from 3,500 firms.
- Last week, financial markets reacted after a viral blog post sparked panic, while concern grew as firms including American tech giant Amazon and German insurer Allianz cited AI for recent job cuts.
- Firm-Level measures reveal frequent AI-using firms were four percent likelier to hire, with some reporting additional hires to develop AI, while only 15 percent of AI-using firms cite labour-cost reduction.
- The economists warned that the limited effects seen to date might continue, and firms planning AI investment expect growth with no hiring pause over the next year.
- Looking ahead, the economists said firms that invested in AI to reduce headcount did so, but AI has not yet significantly transformed production processes, leaving the longer-term horizon unclear.
45 Articles
45 Articles
An unlikely AI optimist
Europe fancies itself a regulatory superpower and makes a sport of hamstringing technological innovation, so a report released Wednesday by the European Central Bank is especially striking. Two labor economists conclude that businesses embracing artificial intelligence are more likely to hire new staff than those who aren’t. Specifically, based on a study of 5,000 firms in the eurozone, companies that make significant use of AI are about 4 perce…
The extension of the use of artificial intelligence (AI) by companies could create jobs in the euro area instead of creating concessions, as many fear, presupposes the European Central Bank (ECB) in a post on the institution’s blog.
A note published by the European Central Bank indicates that companies that frequently use AI are more likely to hire, but those that want to reduce their costs tend to hire less.
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