Christine Lagarde says AI poses no major threat to Europe's labor market

On Tuesday, European Central Bank (ECB) President Christine Lagarde said that innovations in artificial intelligence (AI) are crucial to boosting productivity in Europe. The rapid development of AI technologies won't lead to an employment catastrophe in the region, she stated.

During her speech at the ECB’s Transformative Power of AI conference, Lagarde pointed out that only about 5% of jobs in developed countries meet the criteria for high automation, according to recent studies. In her view, AI solutions can benefit “high-performing workers.”

While discussing this, Lagarde raised the issue of a possible increase in labor inequality as AI technologies are evolving and spreading. Higher-skilled workers are better equipped to utilize these solutions, she noted. This could lead to a higher demand for their services in the labor market compared to less-skilled workers.