AI Could Weaken Bargaining Power of Employees

Philip Lane, the chief economist of the European Central Bank, warns that the mere possibility of companies automating tasks in the future could weaken the position of workers when negotiating higher wages. This could be particularly relevant in Europe, where employees have been trying to make up for lost purchasing power after a period of high inflation and rapid cost of living increases. The ECB notes that there is currently no visible decline in employment due to AI, but the expectation that AI could take over some tasks is changing the balance of power between employees and employers.

The most vulnerable jobs could be office and administrative tasks, as well as parts of programming, analysis, and user support, where generative AI can already be used to perform routine tasks.