Overview

• A study by the European Central Bank (ECB) suggests that AI is creating jobs, particularly for younger and high-skilled workers, but may have a negative effect on wages.
• The study examined the link between AI-enabled technologies and employment shares in a sample of 16 European countries from 2011-2019.
• The employment share of sectors exposed to AI increased, with low- and medium-skill jobs largely unaffected and highly-skilled positions getting the biggest boost.
• However, researchers also found "neutral to slightly negative impacts" on wage growth for occupations more exposed to AI.
• The EU AI Act, which aims to regulate AI, is currently under debate with some member states pushing for limited regulation of foundation AI models.