A study by the European Central Bank (ECB) suggests that fears of artificial intelligence (AI) eradicating human labor could be overblown. AI, utilized in various sectors from providing medical advice to coding, has seen growing investment by companies. This surge has sparked concerns about job security among the public. The report, based on a study conducted in 16 European countries, highlights that employment share in sectors where AI is used has increased. It also notes that low and medium-skilled jobs remain largely unaffected, and high-skilled positions have recorded the most substantial growth.
AI Impact on Jobs and Wages
The ECB's study examined the correlation between AI-enabled technologies and employment shares from 2011-2019. It found that sectors exposed to AI witnessed an increase in employment share, with highly-skilled positions experiencing the most significant boost. However, wage growth for occupations more exposed to AI suffered negative impacts. The study also indicates that AI may have 'neutral or slightly negative effects' on workers' wages, and these effects could increase over time. Yet, the majority of AI's impacts on employment and wages, and hence on growth and equality, have not been observed so far.
AI Boosts Employment, Affects Wage Growth
The research indicates that the use of AI was associated with a minor increase in employment rates in the 16 European countries studied from 2011 to 2019. It demonstrated a positive correlation between AI-enabled automation and employment changes, especially among younger and high-skilled workers. However, wage growth for jobs most exposed to AI saw some negative impacts. The influence of AI on employment and wages differed between countries, and its full impact is still to be revealed.
AI Threatens Wages, Not Job Security
The ECB report suggests that while AI threatens wages, it does not compromise job security. The study revealed a positive association between AI-enabled automation and employment changes, particularly for younger and high-skilled workers. However, occupations more exposed to AI saw neutral to slightly negative impacts on wage growth. The effect of AI on employment and wages is still evolving, and the full extent of its influence remains to be seen.