AI is creating jobs, not replacing them—Here’s why

The fear of artificial intelligence replacing more jobs rather than creating is somehow misplaced as ‌European Central Bank (ECB) argues that the increasing use of AI may be responsible for the employment boom in the eurozone.

ECB in a blog post said, most people only fear that AI is meant to kill the roles but is it creating rather than destroying.

According to the ECB's own Survey on the Access to ​Finance of Enterprises, the firms that make significant use of AI are likely to hire additional staff in the near future. Moreover, the companies planning to invest in will make significant contributions to positive employment growth.

"In other words, AI-intensive firms tend, on average, to ​hire rather than fire," the blog post read.

“This is true regardless of the ​level of planned ​AI investment ⁠and suggests that a pause in hiring due to investment in AI technology is ​also unlikely over the next year,” it added.

On the contrary, a gloomy outlook is prevailing in the world regarding the impact of AI on labour markets. Economists have been debating that AI could replace the white-collar jobs in the coming years.

Recently, the former founder of Twitter has announced to lay off 4,000 workforce from his company block as he claimed AI tools helped the company to work productively with smaller teams.

A recent research study conducted by Germany's Ifo Institute revealed that more than a quarter of German firms expect AI to lead to job cuts in the next 5 years.