AI Creates Jobs but May Lower Wages, ECB Study Finds

Debate Over Regulation of AI Intensifies as EU AI Act Hangs in the Balance

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.