How AI is affecting productivity and jobs in Europe
6 days ago
- #European Economy
- #Productivity
- #Artificial Intelligence
- Europe faces a critical choice in AI adoption, with potential for productivity gains but risks of exacerbating inequality.
- Europe lags behind the US and China in AI innovation but shows similar adoption levels, with significant disparities among EU countries.
- AI adoption in Europe increases labor productivity by 4% on average, without short-term job losses, but benefits are unevenly distributed.
- Larger firms and those in financially developed EU countries adopt AI more readily, highlighting the role of resources and scale.
- Complementary investments in software, data infrastructure, and workforce training significantly amplify AI's productivity effects.
- Policy implications include supporting smaller firms, advancing financial markets, and focusing on complementary investments and skills development.