AI currently boosts hiring in European firms, ECB survey finds
The European Central Bank's latest survey indicates that artificial intelligence is currently leading to more hiring than firing among European firms. Companies that intensively use or invest in AI are more likely to take on additional staff, according to the ECB blog post.
AI's broad reach, narrow investment
Two-thirds of European firms report using artificial intelligence, but only a quarter actively invest in the technology, according to the ECB's survey on the access to finance of enterprises (SAFE).
AI adoption varies significantly by firm size, with nearly 90 percent of large businesses using it compared to 60 percent of small firms.
The low entry barrier for AI tools enables broad usage without direct investment.
While overall employment impact shows no significant difference between AI-using and non-AI-using firms, the picture changes for intensive AI users.
Companies that frequently employ AI are approximately 4 percent more likely to hire additional staff, and firms investing in AI are nearly 2 percent more likely to expand their workforce.
Innovation drives AI hiring
AI investment often correlates with higher AI usage and a demand for new workers, predominantly in small firms.
This growth is driven by companies using AI for research and development (R&D) and innovation.
Only 15 percent of firms use AI to reduce labour costs, a factor insufficient to outweigh the overall positive trends.
Regarding future hiring, firms planning AI investment anticipate employment growth over the next year, suggesting no immediate pause.
However, the longer-term impact remains uncertain, with some studies projecting job cuts over a five-year horizon.
AI: Short-term friend, long-term question
This study provides a crucial short-term perspective for Europe, contrasting with more pessimistic global views.
While AI currently supports employment, especially for innovation, its long-term impact remains uncertain as production processes evolve.
Policymakers must monitor these dynamics closely to ensure a smooth transition for the labor market.