European Central Bank: AI Generates Jobs Instead of Eliminating Them- Analysis

The widespread adoption of artificial intelligence (AI) and related technologies has resulted in an increase in human jobs but a decrease in wages, according to a research bulletin published by the European Central Bank (ECB). The paper, titled “Reports of AI ending human labour may be greatly exaggerated,” aims to refute concerns about AI’s impact on the labor market by presenting data from 16 European countries between 2011 and 2019.

The research indicates that occupations more exposed to AI-enabled technologies experienced a boost in their employment share in Europe during the deep learning boom of the 2010s. This was especially true for high-skilled positions, with younger workers benefitting the most. The study also found that AI exposure was twice as likely to benefit workers in the youngest third of the population.

However, the paper highlights that individual employers within AI-exposed sectors reduced hiring for non-AI-related positions, affecting low- and medium-skilled jobs. The impact on routine-heavy positions was not clear, although earlier studies suggested these jobs may have been lost to less advanced forms of automation.

While two out of three studies examined in the paper found no significant relationship between AI exposure and wages, the remaining study revealed neutral to slightly negative impacts on human earnings for occupations most exposed to AI. These occupations experienced worse wage growth compared to those insulated from the technology.

The paper acknowledges that the disruption caused by AI in the labor market varied significantly between countries, with some countries negatively affected by AI-enabled automation. The writers emphasize that the full impact of AI on employment, wages, growth, and equality is yet to be seen due to the ongoing and unpredictable development and adoption of these technologies.

It is worth noting that the ECB has its own interest in promoting AI’s positive prospects. In a September blog post, the ECB announced its intention to explore the use of AI in economic modeling and data analysis, aiming to incorporate the technology into various applications. The ECB stresses the importance of accelerating the adoption of AI to remain modern and innovative while protecting privacy and legal rights.

Overall, the article presents information from a research bulletin published by the European Central Bank. The sources of the data and research are not explicitly mentioned, making it difficult to assess their credibility. The article does provide some insights into the impact of AI on employment and wages, highlighting both positive and negative effects. However, it is crucial to consider potential biases, such as the ECB’s interest in promoting AI adoption. Additionally, the article does not provide a nuanced understanding of the topic, as it focuses primarily on the correlation between AI adoption, employment, and wages. It fails to explore other critical aspects, such as the potential benefits and risks of AI in different industries and the overall societal implications. The prevalence of fake news and the influence of political landscapes may lead the public to interpret this article as either overly optimistic or pessimistic, depending on their biases and preconceptions. Therefore, it is essential to critically evaluate the information and seek additional sources and perspectives to form a well-rounded understanding of the topic.

Source: RT news: AI creating not killing jobs – European Central Bank