AI's Role in Enhancing European Productivity

European Central Bank (ECB) President Christine Lagarde emphasized the significant role of artificial intelligence in boosting Europe's productivity during her speech at the ECB's Transformative Power of AI conference. Contrary to widespread fears, Lagarde reassured that the advancement of AI does not herald a job "apocalypse" for European workers.

Automation and Employment: A Balanced View

Lagarde cited research indicating that only about 5% of jobs in advanced economies are at high risk of automation. She further disclosed new data suggesting AI's potential to favor "high performers," leaving "less productive workers" without noticeable benefits.

Addressing AI-Induced Labor Inequality

The ECB President also touched upon the growing concern of AI exacerbating labor market inequalities. Higher-skilled workers, more adept at leveraging AI, are likely to see increased demand for their skills, widening the gap with their less-qualified counterparts.