ECB blog suggests AI may create jobs rather than eliminate them

Investing.com -- Artificial intelligence may be creating jobs in the euro zone instead of eliminating them, according to a European Central Bank blog post published Wednesday.

The ECB's Survey on the Access to Finance of Enterprises found that companies making significant use of AI are more likely to hire additional staff in the near term.

"In other words, AI-intensive firms tend, on average, to hire rather than fire," the blog post said. The post does not necessarily represent the ECB's official view.

Firms planning to invest in AI are also more likely to have positive expectations for future employment growth, according to the blog written by two ECB staff economists.

"This is true regardless of the level of planned AI investment and suggests that a pause in hiring due to investment in AI technology is also unlikely over the next year," the economists said.

The findings contrast with concerns about AI's impact on employment. A recent study by Germany's Ifo Institute found that more than a quarter of German firms expect AI to lead to job cuts in the next five years.

The blog post noted that the outlook may change over a longer time horizon. Most surveys with more pessimistic findings cover longer periods than the ECB's survey, and the employment picture could shift once AI begins to significantly transform production processes.

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