German Companies Expect AI to Lower Wages, Entry-Level Employees Hit First

Deep Tide TechFlow reports, on August 12, German companies deploying artificial intelligence anticipate that over the next five years, as AI applications expand, wage levels will be suppressed, particularly for entry-level employees. A June survey of over 3,000 German companies, released Wednesday by the Munich-based German Ifo Institute for Economic Research, revealed that among companies using AI, about half expect wages for employees with less than five years of work experience to decline. The institute stated that for more experienced employees, approximately 40% of companies predict their wages will decrease; meanwhile, employees with university degrees are significantly more likely to see wage increases compared to those without. Ifo Institute researcher Anna Ruffert stated: “For many companies, AI will not have an equal impact on all employees. For employees with formal education, especially those with more extensive work experience, companies more frequently anticipate that AI may have a positive impact on wages.” (Jin10)