ECB's Lane warns AI could weaken euro-area wage bargaining

Philip Lane, who serves as an Executive Board member of the European Central Bank (ECB), issued a warning on October 13 about the potential impact of artificial intelligence on the bargaining power of workers, even in times when workers do not experience mass job losses. Wage growth and labour income share will deteriorate before the employment numbers indicate that a shift has happened. According to Lane, the option of substituting workers could actually work towards increasing the employers’ advantage. However, ECB does not see major changes in employment trends or precise productivity improvements across the economy.

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