The growing use of artificial intelligence (AI) by companies could lead to job creation in the euro area, rather than widespread layoffs, according to a post published on the European Central Bank (ECB) blog, cited by Reuters and reported by Agerpres.
While many analysts fear that automation could trigger job losses, particularly among office workers, the ECB’s findings suggest a different trend.
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A recent study by the German Ifo Institute shows that more than a quarter of companies in Germany expect AI to lead to job cuts over the next five years.
Companies using AI are more likely to hire
However, the ECB analysis titled “Access to Finance of Enterprises” indicates that firms making intensive use of AI are, on average, more likely to hire employees in the near future.
Companies planning investments in artificial intelligence also tend to have positive expectations regarding future workforce growth.
The data suggests that a hiring freeze following AI investments is unlikely in the next year, although the long-term impact remains uncertain.
Productivity gains without mass layoffs
ECB President Christine Lagarde recently stated that AI is already boosting productivity in the euro area.
However, there has been no major wave of layoffs linked to automation so far, she told a committee of the European Parliament.
Lagarde added that the ECB will closely monitor developments, as the impact of artificial intelligence on the labor market could become more visible in the coming years.
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