ECB's Lagarde Vows Close Watch on AI-Led Layoffs as Productivity Gains Emerge Across Europe

Lagarde Vows 'Extremely Attentive' ECB on AI-Driven Job Cuts

The ECB president stated that the bank will be "extremely attentive" to the potential consequences of AI on the labor market, including feared waves of redundancies. The European Central Bank will closely monitor for any signs that the adoption of artificial intelligence throughout the economy is sparking job losses, President Christine Lagarde said. Questioned on the growth and inflation implications, she said that major spending on the technology is happening in Europe as well as the US, with observable results, but that an impact on employment isn't yet visible. "The literature at the moment is telling us that the mass of investment is leading to some productivity improvement," Lagarde told European lawmakers in Brussels on Thursday. "But we're not yet seeing consequences in terms of labor market, and waves of redundancies that are feared, and we will be extremely attentive going forward." Worries about potential widespread job losses caused by AI are ubiquitous. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon this week repeated his prior speculation on how the technology could eliminate the need for truck drivers. On Wednesday, Federal Reserve Governor Lisa Cook warned that the US central bank may not be able to counter rising unemployment driven by adoption of AI. Lagarde said that a "massive investment wave" in the US has been echoed with "significant investment" in Europe. "We are beginning to see some results and some data that we can identify," she said. "Europe is not lagging behind -- Europe is equally moving and equally benefiting from those productivity increases, including in the SME sector, that's what our data and our surveys are telling us. What we don't know yet, and which we're looking at very carefully, is the impact that it will have on the labor market." The ECB president also observed that AI is emblematic of the challenge policymakers have in assessing shifts in the economy that have become far more abrupt. Read More on AI: AI Investment to Keep Rising and Boost World Economy, OECD Says AI Bubble Issue Is 'Critical' to Inflation View, Hildebrand Says ECB's Lagarde Says Embracing AI Can Still Give Europe an Edge ECB's Lagarde Says Europe Can Still Benefit Greatly From AI "These things came out three years ago, and the speed at which they replace each other and the speed at which they update is something that I don't think that we have seen before," Lagarde said. "It's a combination of uncertainty, shock to the economy, transformative factor -- for good or for bad -- at a speed that is just incredible."

ECB sees no wave of AI-led layoffs yet, Lagarde says

FRANKFURT, Feb 26 (Reuters) - Artificial intelligence is boosting productivity in the euro zone but it is not yet causing a wave of layoffs due to greater automation of labour, European Central Bank President Christine Lagarde said on Thursday. "What we are seeing for the moment is that it's increasing productivity," Lagarde told a committee of the European Parliament. "But we are not yet seeing consequences in terms of labour market and waves of redundancies that are feared, and that you know we will be extremely attentive going forward." Reporting by Balazs Korany and Francesco Canepa; Editing by Alison Williams Our Standards: The Thomson Reuters Trust Principles., opens new tab

ECB sees no wave of AI-led layoffs yet, Lagarde says

FRANKFURT, Feb 26 (Reuters) - Artificial intelligence is boosting productivity in the euro zone but it is not yet causing a wave of layoffs due to greater automation of labour, European Central Bank President Christine Lagarde said on Thursday. "What we are seeing for the moment is that it's increasing productivity," Lagarde told a committee of the European Parliament. "But we are not yet seeing consequences in terms of labour market and waves of redundancies that are feared, and that you know we will be extremely attentive going forward." (Reporting by Balazs Korany and Francesco Canepa; Editing by Alison Williams)