The integration of artificial intelligence (AI) into the workforce has, so far, resulted in fewer disruptions than initially anticipated. Despite widespread adoption across businesses, the technology is not demonstrating a negative impact on employment levels, according to economist Anders Humlum. He stated that there is currently no indication of a looming crisis stemming from AI implementation.
Humlum, an economics professor at the University of Chicago, conducted extensive analysis of Danish labor market data alongside his colleague Emilie Vestergaard. Denmark is highly regarded among labor economists due to the detailed data readily available for research purposes.
Their investigations reveal that while chatbots have become commonplace in many workplaces – with 43% of employees actively encouraged by their employers to utilize them – their economic impact appears minimal. Survey respondents reported, on average, a time-saving of only 2.8% of their working hours due to AI integration. Humlum emphasized that AI is not driving significant job losses or widespread displacement of workers.
These findings contrast with a recent study from Stanford University, which sparked global concern in late August. That research, led by AI expert Erik Brynjolfsson, posited that AI is already eliminating numerous entry-level positions held by young academics, particularly in easily automated areas like software development.
Humlum’s research mirrored this pattern within the Danish job market. He found that the reduced job prospects for many young professionals were evident in companies heavily utilizing AI programs, as well as those with minimal adoption. Based on this observation, he concluded that the underlying cause likely resides outside of AI implementation itself.
Enzo Weber of the Institute for Employment Research shares a similar perspective regarding the German labor market. While specialized job openings have slightly declined since 2019, Weber attributes this to the industrial crisis that began around that time.
He noted that the rise in youth unemployment in Germany is also attributable to other factors. Young people are particularly reliant on new roles, which have been scarce following years of economic stagnation. Weber’s assessment suggests that young people are not negatively affected by AI, but rather by a broader crisis of renewal within the German economy.
