So far, artificial intelligence (A.I.) is reducing employee wages rather than taking their jobs. That’s the conclusion of a new report from the European Central Bank (ECB).
While companies around the world continue to invest heavily in A.I., the technology is not yet replacing workers in large numbers as many economists have predicted.
However, A.I. is leading to lower wages in the workforce, especially among young people, says the ECB report.
In an examination of 16 European countries, the ECB found that job losses due to A.I. are negligible but that the technology is having a “neutral to slightly negative impact” on earnings, a development the central bank expects to increase in coming years.
The report found that wages offered for low and medium-skilled jobs are being eroded on expectations that employers can use A.I. to offset some of the tasks performed by those workers.
The ECB report adds that it is still early days and the full impact of A.I. on the labour market has yet to be realized.
“Most of (A.I.’s) impact on employment and wages – and therefore on growth and equality – has yet to be seen,” states the report.
