The Economic Advisory Council of the CDU, an interest group closely aligned with the Christian Democratic Union, has issued a warning regarding the potential consequences of so-called “Artificial Intelligence” on the financing of both state budgets and social security. According to a paper on AI released by the council (which was reported by the “Rheinische Post”), the greatest economic risk lies in the growing decoupling between productivity gains and wage labor. The council warns that profits might concentrate among a few global technology firms while the total wage bill only grows weakly.
If automation leads to a long-term reduction in human labor and causes the growth of the wage bill to lag behind overall economic value creation, the financial basis for contributory social security-which is also funded through contributions-will narrow relative to the economy’s overall capacity. In this context, Wolfgang Steiger, the council’s general secretary, stated that there is an urgent need to examine whether current tax and social insurance systems are adequately prepared for these changes.
Meanwhile, the party Die Linke has raised concerns that an increased use of AI could put further strain on employees. Donata Vogtschmidt, a Member of the Bundestag for Die Linke and spokesperson for digital policy, cited several Harvard studies showing that intensive AI use leads to cognitive overload and increased stress among workers. Furthermore, Vogtschmidt criticized the current investment landscape, stating, “For years, investments in the AI sector have been in a questionable ratio to the economically measurable output, and we must also consider the enormous additional energy consumption. I am deeply concerned that the actual costs associated with everyday AI use are being completely underestimated.”
