German Companies Expect AI to Depress Wages, Junior Employees Bear the Brunt

TechFlow reports, August 12, German companies deploying artificial intelligence expect that within the next five years, as the scope of artificial intelligence applications expands, wage levels will be suppressed, especially the salaries of junior employees. A June survey of more than 3,000 German companies released Wednesday by the Munich-based German ifo Institute for Economic Research shows that among companies using artificial intelligence, about half expect salaries for employees with less than 5 years of work experience to decline.

The institute stated that for employees with more seniority, about 40% of companies expect their wages to slide; meanwhile, the likelihood of salary increases for employees with university degrees is significantly higher than for those without university degrees. ifo Institute researcher Anna Ruffert stated: "For many companies, artificial intelligence will not have an equal impact on all employees. For employees with formal qualifications, especially those who also possess more extensive work experience, companies more frequently expect that artificial intelligence may have a positive impact on wages." (Jin10)