European Central Bank finds AI creating jobs instead of destroying them in the euro zone

AI may be creating instead of destroying jobs for now, ECB blog argues

FRANKFURT, March 4 (Reuters) - The increasing use of artificial intelligence by firms may be creating some jobs in the euro zone rather than destroying them as many fear, a European Central Bank blog post argued on Wednesday. Economists have been debating whether AI could put white collar staff out of work, and a recent study by Germany's Ifo Institute found that more than a quarter of German firms expect ⁠AI to lead to job cuts in the next five years. But the ECB's own Survey on the Access to Finance of Enterprises found that companies making significant use of AI are more likely to take on additional staff in the near term. "In other words, AI-intensive firms tend, on average, to hire rather than fire," the blog post, which is not necessarily the view ⁠of the ECB, said. Firms planning to invest in AI are also more likely to have positive expectations for future employment growth, the blog argued. "This is true regardless of the level of planned AI investment ⁠and suggests that a pause in hiring due to investment in AI technology is also unlikely over the next year," the blog, written ⁠by two ECB staff economists, said. However, the outlook may change on the longer horizon, the authors said. Most of the ⁠gloomier surveys cover longer horizons than the ECB's own question and the outlook could change once AI starts to significantly transform production processes. Reporting by Balazs Koranyi; Editing by Andrew Heavens Our Standards: The Thomson Reuters Trust Principles., opens new tab

AI not hitting European jobs for now: ECB

Frankfurt (Germany) (AFP) - Artificial intelligence has only had minor effects on employment in Europe so far, European Central Bank economists said Wednesday, but they warned the technology's future impact was uncertain. Comparing 3,500 firms, some of which reported using AI and some of which did not, the economists overall found no difference in terms of creating or cutting jobs. Firms that use AI particularly frequently were in fact four percent likelier to hire new staff than average, the economists said in a blog post. "As things stand, based on firms' overall hiring plans, investment in and the intensive use of AI are not yet replacing jobs," they said. "In fact, some firms are hiring additional employees -- perhaps because they are looking to develop and implement AI technologies while maintaining their existing production processes, or because AI is a way to help them scale up more quickly," they added. The economists warned that firms that invested in AI with the aim of cutting jobs did indeed end up doing so, suggesting there could be profound effects on jobs as the technology matures. "However, only 15 percent of firms that use AI cite reducing labour costs as a factor, and this is insufficient to offset the overall positive effects observed to date," they said. Concern has grown that AI could have profound effects on employment, and firms including American tech giant Amazon and German insurer Allianz have cited AI-uptake as a reason for job cuts in recent months. Markets tumbled last week after a viral blog post described a gloomy scenario in which AI led to mass layoffs, depressing economic growth. The ECB economists warned that the limited effects seen to date might continue in the future. "AI has not yet significantly transformed production processes," they said. "Given that this is set to change, the longer-term impact of AI on employment remains less clear."

AI Job Creation: European Central Bank Blog Reveals Positive Employment Trends

Economists have been debating whether AI could put white ⁠collar ⁠staff out of work, and a recent study by Germany's Ifo Institute found that more than a quarter of German firms expect AI to lead to job cuts in the next five years. The increasing use of artificial intelligence by firms may be creating some jobs in the euro zone rather than destroying them as many fear, a European Central Bank blog post argued on Wednesday. Economists have been debating whether AI could put white ⁠collar ⁠staff out of work, and a recent study by Germany's Ifo Institute found that more than a quarter of German firms expect AI to lead to job cuts in the next five years. But the ECB's own Survey on the Access to Finance of Enterprises found ⁠that companies making significant use of AI are more likely to take on additional staff in the ⁠near term. "In other words, AI-intensive firms tend, on average, to hire rather than fire," the blog post, which is not necessarily the view of the ECB, said. Firms planning to invest in AI are also more likely to have positive expectations for future employment growth, the blog argued. "This is true regardless of the level of planned AI investment and suggests that a pause in hiring due to investment in AI ⁠technology is also unlikely over the next year," the blog, written by two ECB staff economists, said. However, the outlook may change on the longer horizon, the authors said. Most of the gloomier surveys cover longer horizons than the ECB's own question and the outlook could change once AI starts to significantly transform production processes.

ECB blog suggests AI may create jobs rather than eliminate them By Investing.com

Investing.com -- Artificial intelligence may be creating jobs in the euro zone instead of eliminating them, according to a European Central Bank blog post published Wednesday. The ECB's Survey on the Access to Finance of Enterprises found that companies making significant use of AI are more likely to hire additional staff in the near term. "In other words, AI-intensive firms tend, on average, to hire rather than fire," the blog post said. The post does not necessarily represent the ECB's official view. Firms planning to invest in AI are also more likely to have positive expectations for future employment growth, according to the blog written by two ECB staff economists. "This is true regardless of the level of planned AI investment and suggests that a pause in hiring due to investment in AI technology is also unlikely over the next year," the economists said. The findings contrast with concerns about AI's impact on employment. A recent study by Germany's Ifo Institute found that more than a quarter of German firms expect AI to lead to job cuts in the next five years. The blog post noted that the outlook may change over a longer time horizon. Most surveys with more pessimistic findings cover longer periods than the ECB's survey, and the employment picture could shift once AI begins to significantly transform production processes. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

AI may be creating instead of destroying jobs for now, ECB blog argues

FRANKFURT, March 4 (Reuters) - The increasing use of artificial intelligence by firms may be creating some jobs in the euro zone rather than destroying them as many fear, a European Central Bank blog post argued on Wednesday. Economists have been debating whether AI could put white collar staff out of work, and a recent study by Germany's Ifo Institute found that more than a quarter of German firms expect AI to lead to job cuts in the next five years. But the ECB's own Survey on the Access to Finance of Enterprises found that companies making significant use of AI are more likely to take on additional staff in the near term. "In other words, AI-intensive firms tend, on average, to hire rather than fire," the blog post, which is not necessarily the view of the ECB, said. Firms planning to invest in AI are also more likely to have positive expectations for future employment growth, the blog argued. "This is true regardless of the level of planned AI investment and suggests that a pause in hiring due to investment in AI technology is also unlikely over the next year," the blog, written by two ECB staff economists, said. However, the outlook may change on the longer horizon, the authors said. Most of the gloomier surveys cover longer horizons than the ECB's own question and the outlook could change once AI starts to significantly transform production processes. (Reporting by Balazs Koranyi; Editing by Andrew Heavens)